Products & RisksQuestion 1 of 125
A common stockholder in a corporation is generally entitled to which of the following rights?
a.A fixed dividend paid before any distribution to bondholders
b.The right to vote on major corporate matters such as the election of the board of directors
c.A guaranteed return of principal at a stated maturity date
d.A senior claim on assets ahead of secured creditors in a liquidation
Explanation
Common stock carries voting rights, typically including election of directors and approval of major corporate actions. Dividends on common stock are never guaranteed, and common holders stand last in the liquidation priority, behind creditors and preferred holders.
Law Reference: Securities Exchange Act of 1934Practice all 125 questions free — no signup required.
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