Blair and Chanel are holders of common stock in Discount Retail Stores, Inc. Like other holders of common stock, they have a residual position in the overall financial structure of Discount Retail, because they
a. reside in the state of the firm’s incorporation.
b. have priority to the firm’s assets if it becomes insolvent.
c. are guaranteed to receive more than the amount of their investment.
d. are the last to receive returns for their investment.
