Asked by Christopher Thomas on Jun 09, 2024

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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.
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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.