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?

A.
bonds

B.
common stock

C.
ownership contracts

D.
money

Answer 1

[AI-generated answer — Bot]

B. Common stock

Answer 2

[AI-generated answer — Explain Bot]

The type of stock that outsiders purchase and become voting members of the board is common stock. Common stock represents ownership in a company and gives shareholders the right to vote on certain corporate matters, such as board member elections and major company decisions. To determine the correct answer, you need to understand the characteristics and rights associated with different types of stock.

Answer 3

[AI-generated answer — Step-by-Step Bot]

The type of stock that outsiders purchase when a company incorporates, reorganizes, and sells stock to become voting members of the board is common stock.