Esther bought one share of The Walt Disney Company stock for each of her grandchildren for Christmas.Each stock certificate had the name of the owner printed on it and was decorated with the Disney characters.Esther explained to the grandchildren that when The Walt Disney Company had an annual meeting,the whole family would go because each of them now owned a part of The Walt Disney Company.The children were excited.When it was time to go to the meeting they all drove to the Anaheim Convention Center together,showed their proxy card to the door attendant and were admitted.They were greeted by Disney characters and were able to pose with them before taking their seats.During the meeting,the board of directors was introduced,the president gave a speech,and each director spoke about the area of The Walt Disney Company they were in charge of and showed movies and PowerPoints about the financial aspects of their area of responsibility.At the end of the meeting,Esther and the children voted for the new president of the company,a director,and approved the accounting firm.What kind of stock do Esther and her grandchildren own in The Walt Disney Company?

Question

Quizplus · Accepted Answer

Based on the description, it is clear that Esther and her grandchildren own common stock in The Walt Disney Company. Common stock is the most basic form of ownership in a company and typically comes with voting rights at shareholder meetings, which is consistent with the fact that they were able to vote for the president and director during the meeting. Preferred stock, on the other hand, typically does not come with voting rights and is more focused on providing a fixed dividend payment. Convertible stock refers to stock that can be converted into a different type of security, such as bonds or shares of a different class of stock. Initial public offering refers to the first time a company sells shares of its stock to the public.

Esther Bought One Share of the Walt Disney Company Stock