Asked by Timothy Robinson on May 08, 2024
Verified
Voting rights are a characteristic of which type of stock?
A) Common but not preferred
B) Preferred but not common
C) Both common and preferred
D) Neither common nor preferred
Voting Rights
The right of shareholders to vote on corporate matters, typically exercised during annual general meetings.
Common Stock
Equity securities representing ownership shares in a corporation, with voting rights and potential dividends.
Preferred Stock
A class of ownership in a corporation that has a higher claim on assets and earnings than common stock, usually with fixed dividends.
- Understand the importance of voting rights, dividend entitlements, and the functions of shareholders within a corporation.
Verified Answer
MS
McKenna SchlueterMay 11, 2024
Final Answer :
A
Explanation :
Common stock typically grants voting rights to shareholders, allowing them to vote on corporate matters. Preferred stock usually does not offer voting rights.
Learning Objectives
- Understand the importance of voting rights, dividend entitlements, and the functions of shareholders within a corporation.