What right do most common stockholders have that most preferred stockholders do not have?
A) first claim to company distributions
B) voting rights
C) ability to sell stock in the open market
D) dividend guarantees
E) authority over daily business decisions

Question

Quizplus · Accepted Answer

Most common stockholders have the right to vote in company decisions and elect the board of directors, while most preferred stockholders do not have voting rights. Choice A (first claim to company distributions) may apply to both common and preferred stockholders depending on the specific terms of the stock. Choice C (ability to sell stock in the open market) applies to both common and preferred stockholders. Choice D (dividend guarantees) may apply to preferred stockholders but not necessarily to common stockholders. Choice E (authority over daily business decisions) is typically reserved for company management and not shareholders.

What Right Do Most Common Stockholders Have That Most Preferred