Asked by Fantasia Jessie on Jun 25, 2024
Verified
Common stockholders have voting rights and can declare cash dividends.
Common Stockholders
Individuals or entities that own shares of a company's common stock, giving them rights to vote on company matters and receive dividends, subject to the company's performance and dividend policy.
Voting Rights
Rights granted to shareholders to vote on matters of corporate policy, including decisions on the composition of the board of directors.
- Attain an understanding of the entitlements and characteristics linked to common and preferred shareholders.
Verified Answer
HP
Hriday PatelJun 28, 2024
Final Answer :
False
Explanation :
Common stockholders have voting rights, but the declaration of cash dividends is a decision made by the company's board of directors, not the common stockholders.
Learning Objectives
- Attain an understanding of the entitlements and characteristics linked to common and preferred shareholders.