Common stockholders have the right to _____.

Question

Quizplus · Accepted Answer

Common stockholders have the right to vote on important matters related to the company such as changes in a firm's charter, election of board members, and mergers or acquisitions. This is a significant advantage of holding common stock.

Answer: C 
 Although preferred stockholders receive a fixed dividend payment, common stockholders have the priority to receive cash distributions before preferred stockholders. This means that if the company is unable to pay both preferred and common stock dividends, common stockholders will be paid first.

Common Stockholders Have the Right to _____