Christopher Pratt just bought shares of common stock.Which one of the following is he entitled to based on his ownership of these shares?
A)Semiannual interest payments
B)Guaranteed annual dividends
C)Right to vote at annual meetings
D)Right to declare a stock split
E)Right to declare future dividends

Question

Quizplus · Accepted Answer

Common stock ownership typically provides the shareholder with the right to vote at annual meetings, which can include votes on corporate policy, selection of the board of directors, and other significant matters. The other options listed, such as receiving semiannual interest payments, guaranteed annual dividends, declaring a stock split, or declaring future dividends, are not rights directly associated with holding common stock. Interest payments are associated with bonds, dividends are not guaranteed for common stockholders, and the right to declare stock splits or future dividends is typically reserved for the company's board of directors.

Christopher Pratt Just Bought Shares of Common Stock