Asked by
Helen Hoang
on Nov 15, 2024Verified
Preferred stockholders have what right over common stockholders?
A) More risk than common stockholders
B) Voting rights
C) Prior claim to dividends
D) Preemptive rights
Prior Claim
A legal right or financial obligation that takes precedence over others, typically in the context of creditors in bankruptcy proceedings.
- Understand the rights and privileges associated with preferred and common stocks, including dividend preferences, voting rights, and preemptive rights.
Verified Answer
BP
Learning Objectives
- Understand the rights and privileges associated with preferred and common stocks, including dividend preferences, voting rights, and preemptive rights.