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

Question

Quizplus · Accepted Answer

The right to vote on major corporate actions belongs to common stockholders, as they are the owners of the company and have the greatest interest in its success. Bondholders have no ownership stake in the company and do not have voting rights. Preferred stockholders may have limited voting rights or none at all, depending on the terms of their stock. Participating preferred stockholders may have additional voting rights, but this is not always the case. Convertible preferred stockholders also may have limited or no voting rights, as their primary interest is in the ability to convert their stock to common stock at a later date.

The Right to Vote on Major Corporate Actions Belongs to