Christopher Pratt just bought shares of common stock. Which one of the following is he entitled to based on his ownership of these shares?
A) Semi-annual interest payments
B) Guaranteed annual dividends
C) Right to vote on major corporate issues
D) Right to declare a stock split
E) Right to declare future dividends

Question

Quizplus · Accepted Answer

As a common stock shareholder, Christopher Pratt has the right to vote on major corporate issues such as electing board members, approving mergers or acquisitions, and making changes to the company's bylaws. He is not entitled to semi-annual interest payments or guaranteed annual dividends, as these are typically payments made to bondholders or preferred stockholders. Only the board of directors can declare a stock split or future dividends, so Christopher Pratt does not have these rights as a shareholder.

Christopher Pratt Just Bought Shares of Common Stock