While common stockholders have the right to receive dividends, holders of preferred stock elect the board of directors and approve or disapprove major corporate actions.

Question

Quizplus · Accepted Answer

Preferred stockholders do not typically have the right to elect the board of directors or approve major corporate actions. They usually have limited voting rights and their main benefit is a fixed dividend payment.

While Common Stockholders Have the Right to Receive Dividends, Holders