The owners of common stock do NOT have the specific right to ________.
A)vote for members of the board of directors
B)share in the corporation's earning
C)acquire more shares when a corporation issues more stock
D)receive dividends automatically each year

Question

Quizplus · Accepted Answer

While common stockholders have the right to vote for members of the board of directors and to share in the corporation's earnings, they do not have the specific right to automatically receive dividends each year. The decision to pay dividends is ultimately up to the board of directors. Additionally, while common stockholders can purchase more shares when a corporation issues more stock, they do not have an automatic right to do so.

The Owners of Common Stock Do NOT Have the Specific