Most corporations have an annual meeting where stockholders have the opportunity to vote on important issues. These issues include:
Answer(s): A,B
Stockholders are generally allowed one vote per share held. As a result, individuals who hold large blocks of share are more likely to be board members. Which of the following are out of the basic rights of stockholders?
Answer(s): A,D
Although these rights do not always exist, if they do, shareholders are entitled to buy any new issue of stock in proportion to their holdings. If a person owns 5% of a corporation, then he or she would have the right to buy 5% of newly issued shares. These are:
Answer(s): B
Shareholders also have the right to receive declared dividends. Besides the potential for capital appreciation, investors also have the potential to receive dividend income. There are several types of dividends. For instance, an investor with 500 shares of stock selling at $50 per share would have 1, 000 shares at $25 per share after a 2-for-1 split. These types of dividends are called:
Answer(s): D
Preferred stock is similar to common stock in that it represents ownership in a corporation. Preferred stockholders generally receive as fixed dividend rate. The types of preferred stock include all of the following EXCEPT:
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