Question

Which of the following represents a right that is typically granted to common stock shareholders? Select...

Which of the following represents a right that is typically granted to common stock shareholders? Select all that apply.

  • A residual claim on any liquidated assets in the event of bankruptcy

  • The right to vote on company matters

  • The right to a specific dividend amount each year (based on a percentage of the par value of the shares)

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Answer:

Common stockholder will not receive assets after bankruptcy unless the bondloders, other creditors and preffered stockholder are paid first.

The right to vote on company's matter ( right of common stockholder to vote on matters of corporate policy, including decision on the makeup of the borad of directors, issuing securities, initiating corporate actions and making substantial change in the corporation's operation) &

The right to a specific dividend amount each year (based on a percentage of the par value of the shares).

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