Which of the basic rights of shareholders does the preferred shareholder usually give up in order to acquire preferences over the common shareholder?
A)Right to share in profits and losses
B)Right to share in subsequent issues of shares
C)Right to share in assets upon liquidation
D)Right to vote

Question

Quizplus · Accepted Answer

The preferred shareholder usually gives up the right to vote in order to acquire preferences over the common shareholder. This means that while preferred shareholders receive priority over common shareholders in terms of dividends and assets during liquidation, they do not have a say in the decision-making process of the company.

Which of the Basic Rights of Shareholders Does the Preferred