Canadian Securities Course (CSC) Practice Exam · Question
What type of equity security typically offers investors voting rights and the potential for capital appreciation, but no guaranteed dividend?
Common shares represent ownership in a company, typically granting voting rights and the potential for capital gains, but dividends are not guaranteed.
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Question: What type of equity security typically offers investors voting rights and the potential for capital appreciation, but no guaranteed dividend?
Answer options: ✅ Common shares
- Preferred shares
- Warrants
- Convertible debentures
Correct answer: Common shares
Explanation: Common shares represent ownership in a company, typically granting voting rights and the potential for capital gains, but dividends are not guaranteed.
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