Which of the following are the typical rights afforded to preferred shareholders?
A) A preferential right to receive dividend and a preference to receive the liquidation value of assets over common stock holders.
B) A preference to receive dividends when declared by the board of directors after common shareholders receive their dividends.
C) A preference to receive the liquidation value of the assets as stated in the share contract after common shareholders receive their share.
D) The right to vote on major corporate issues including electing the board of directors.

Question

Quizplus · Accepted Answer

Preferred shareholders typically have a preferential right to receive dividends over common stock holders, and in the event of liquidation, they have a preference to receive the liquidation value of assets over common stock holders. Preferred shareholders may not necessarily have the right to vote on major corporate issues.

Which of the Following Are the Typical Rights Afforded to Preferred