While ordinary shareholders have the right to receive dividends, holders of preferred stock elect the board of directors and approve or disapprove major corporate actions.

Question

Quizplus · Accepted Answer

While preferred stockholders may have certain voting rights, such as the ability to elect board members and approve major corporate actions, they typically do not have the right to receive dividends. That right is generally reserved for common shareholders.

While Ordinary Shareholders Have the Right to Receive Dividends, Holders