Series 7 practice questioneasyEquity Securities 1
A holder of common stock would normally expect which right?
- AA fixed quarterly dividend
- BPriority over bondholders for interest payments
- CVoting for the board of directors✓ Correct answer
- DRedemption at par on demand
Explanation
Why C — Voting for the board of directors
Common stockholders normally elect directors and vote on major corporate matters. Unlike bondholders or preferred stockholders, they do not have a guaranteed dividend or mandatory redemption right.
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