Question

Preferred stockholders receive their
dividends_ ______common stockholders and are_____ in
corporate decisions.
A- after; voters
B- before; voters
C- after; non-voters
D- before; non-voters

Answer 1

Answer:

D- before; non-voters

Explanation:

Preferred stocks represent a type of ownership in a corporation or limited liability company. Preferred stockholders are given preference over the assets of the business. If the business makes profits, preferred shareholders will be paid first. In case of a dissolution, preferred shareholders will be given priority over ordinary shareholders in the distribution company's assets. On the flip side, preferred shareholders have no voting rights on matter pertaining to the business.