Common stock is a vehicle for selling ownership and another way to raise money for operations, expansion, or other business needs. True False

Question

Escobar

Business

9 January, 13:58

Common stock is a vehicle for selling ownership and another way to raise money for operations, expansion, or other business needs. True False

+5

Answers (1)

Know the Answer?

Brianna Travis · Answer 1

The statement, "Common stock is a vehicle for selling ownership and another way to raise money for operations, expansion, or other business needs" is true.

Explanation:

Common stock is a distribution tool and a way to raise capital for investment, business growth or other company needs.

Common stock is a kind of company holding, a type of safety. In many other regions of the world, the terms polling share and prevalent share are frequently were using.

The "common stock" is used mainly in the USA. These are classified as shareholdings or common shares in the United Kingdom and other Commonwealth.

It means that one common stock share constitutes percentage equity of a corporation. In certain words, this is a way to split the assets of a corporation.

For example, if 100 shares were taken out, one share would amount to one percent of the company's intellectual property.