Common stock holders have ____ in the income and assets of a corporation after preferred stockholders and bond holders.

Question

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Common stock holders have a residual claim on the income and assets of a corporation, meaning they have the right to any remaining profits or assets after preferred stockholders and bond holders have been paid. This is because common stock represents ownership in the company, while preferred stock and bonds represent a form of debt. Common stock holders also have limited liability, meaning their personal assets are not at risk in the event of the corporation's bankruptcy or other financial troubles. However, they do not have a preemptive right, which would allow them to purchase additional shares of stock before it is offered to the public.

Common Stock Holders Have ____ in the Income and Assets