Question

When a company incorporates, reorganizes, and sells stock, outsiders who purchase the stock become voting members of the board. What type of stock is this?

(1 point)
Responses

bonds

bonds

common stock

common stock

ownership contracts

ownership contracts

money

money

Answer 1

The correct response is **common stock**. When outsiders purchase common stock, they become shareholders and typically gain voting rights in the company, which may include the ability to vote on certain corporate matters.