Asked by Anupama Balaji on Jul 01, 2024
Preferred shareholders are generally granted the right to:
A) Vote for the members of the board of directors.
B) Vote on any proposed merger or acquisition.
C) Receive payment prior to the creditors in a liquidation.
D) First priority for any dividend distributions.
E) Collect prior dividends which were unpaid provided that the stock is noncumulative.
Preferred Shareholders
Investors who own preferred shares in a company, giving them priority over common shareholders in the distribution of dividends and assets.
Dividend Distributions
Payments made by a corporation to its shareholders, usually derived from the company's earnings.
- Understand the features and entitlements linked to various stock categories, such as common and preferred stocks.
Learning Objectives
- Understand the features and entitlements linked to various stock categories, such as common and preferred stocks.