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What is the basic two types of ownership interest

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Question 1: A company has both common stock authorized and preferred stock authorized. What is the basic difference between these two types of ownership interest ?

Option 1: The owners of common stock have rights that are set by the state of incorporation whereas the owners of preferred stock have rights that are set by the stock contract

Option 2: Common stock has a par value but preferred stock does not

Option 3: The owners of common stock have voting rights whereas the owners of preferred stock do not have voting rights

Option 4: Common stock has a set dividend rate but preferred stock does not

Reference no: EM132586514

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