Asked by Carissa Abrams on Jun 25, 2024
Verified
Preferred stockholders do not have voting rights but do have a preference with respect to dividend payments.
Preferred Stockholders
Investors who own preferred shares in a company, which often grant dividends before common stockholders and have priority in asset liquidation.
Voting Rights
The rights of shareholders to vote on corporate matters, such as the election of the board of directors.
Dividend Payments
Cash payments made by a company to its shareholders, often as a distribution of profits.
- Differentiate between the rights and privileges of preferred stockholders versus common stockholders.
Verified Answer
EM
Ernest MudauJul 01, 2024
Final Answer :
True
Explanation :
This is a correct statement. Preferred stockholders do not typically have the right to vote on corporate matters, but they do have priority over common stockholders when it comes to receiving dividend payments.
Learning Objectives
- Differentiate between the rights and privileges of preferred stockholders versus common stockholders.