Which of the following are the typical rights afforded to preferred shareholders?
A) A preference to receive dividends when declared by the board of directors after common shareholders receive their dividends.
B) A preference to receive the liquidation value of the assets as stated in the share contract after common shareholders receive their share.
C) The right to vote on major corporate issues including electing the board of directors.
D) A preferential right to receive dividend and a preference to receive the liquidation value of assets over common stock holders.

Question

Quizplus · Accepted Answer

Preferred shareholders typically have a preferential right to receive dividends and a preference in the distribution of assets upon liquidation over common shareholders, but they often do not have voting rights on major corporate issues.

Which of the Following Are the Typical Rights Afforded to Preferred