Andy invests in Orelon Corp., a plastic manufacturing company. As a stockholder, he owns a part of the company and he holds the right to vote on company issues. However, he is entitled to dividends only when the company's board of directors decides to. According to the company policies, if Orelon Corp. faces dissolution in the future, Andy will receive his assets only after the company satisfies the claim of the preferred stockholders. Based on the given information, it can be concluded that Andy is a _____.

Question

Quizplus · Accepted Answer

Andy is a common stockholder because he has voting rights and receives dividends at the discretion of the board, and he is paid after preferred stockholders in case of dissolution.

Andy Invests in Orelon Corp