Which of the following are the typical rights afforded the preferred shareholders?
A)A preference to receive dividends when declared by the board of directors before common shareholders can receive their dividends.
B)A preference to receive the liquidation value of the assets as stated in the share contract before common shareholders can receive their share.
C)The right to vote on major corporate issues including electing the board of directors.
D)Two of the responses are preferred shareholder rights.

Question

Quizplus · Accepted Answer

Preferred shareholders typically have the rights to receive a preference in receiving dividends and liquidation proceeds before common shareholders. They usually do not have the right to vote on major corporate issues unless granted in the share contract or bylaws. Therefore, options A and B are correct while C is incorrect. Hence, the best answer is D, which includes options A and B.

Which of the Following Are the Typical Rights Afforded the Preferred