Asked by Christopher Thomas on Jun 09, 2024
Verified
Preferred shareholders usually get preference when dividends are declared but no vote.
Preferred Shareholders
Holders of preferred shares who may have a right to vote arising if dividends are not paid.
Dividends
Payments made by a corporation to its shareholders from profits, usually on a regular basis.
Vote
A formal indication of choice between options, typically in elections or other decision-making processes.
- Appreciate the nuance between different types of shares and their attributes.
Verified Answer
OE
Olivia EvansJun 14, 2024
Final Answer :
True
Explanation :
Preferred shareholders typically have a priority over common shareholders when it comes to dividend payments, but they usually do not have voting rights in the company's corporate decisions.
Learning Objectives
- Appreciate the nuance between different types of shares and their attributes.