Common stock is last stock in line for any corporate payouts, including dividends and liquidation payments.

True / False.

The correct answer id True.

Explanation:

Common stock is last stock in line for any corporate payouts, including dividends and liquidation payments.

The holder of common (ordinary) stocks are consider to be the owner of the company. They have voting right. These shares entitled their holder to dividends that may vary in amount and may even be missed, depending on the state of the company. However with greater reward their comes greater risk. So in case of winding up they will be last one to get any benifit after settlement of all claim.