Asked by
Allyrian Bacon
on Nov 14, 2024Verified
When a corporation has only one class of capital stock it is identified as preferred stock.
Preferred Stock
A class of ownership in a corporation with a priority claim on assets and earnings before common stock; typically does not have voting rights but has a fixed dividend.
Capital Stock
The total amount of stock, both common and preferred, that a company is authorized to issue according to its corporate charter.
- Understand the basic structure and types of capital stock in a corporation.
Verified Answer
KR
Learning Objectives
- Understand the basic structure and types of capital stock in a corporation.