The right to vote on major corporate actions belongs to
A) bondholders.
B) preferred stockholders.
C) prefered bondholders.
D) convertible preferred stockholders.
E) common stockholders.

Question

Quizplus · Accepted Answer

The right to vote on major corporate actions belongs to the common stockholders. Bondholders only have a right to receive interest and principal payments, while preferred stockholders have limited voting rights and typically cannot vote on major corporate actions. Convertible preferred stockholders have the option to convert their shares into common stock and then exercise their voting rights, but they do not have automatic voting rights. Therefore, the common stockholders have the ultimate say in the decision-making of a corporation.

The Right to Vote on Major Corporate Actions Belongs to