SIE practice questionmediumTreasury Stock
What is the status of voting rights and dividend eligibility for treasury stock?
- ATreasury stock receives dividends but can't vote.
- BTreasury stock has voting rights but receives no dividends.
- CTreasury stock has no voting rights and receives no dividends.✓ Correct answer
- DTreasury stock has both voting rights and receives dividends.
Explanation
Why C — Treasury stock has no voting rights and receives no dividends.
Treasury shares lose both voting rights and dividend eligibility since they are held by the issuing company. The other options incorrectly assign rights to treasury shares.
Turn it into reps
Reading one answer is not the same as being ready
Lucky the Banker is a free practice app with 1,867+ SIE questions, weak-area tracking, and timed mock exams. No credit card, no paywall.
Related Equity Securities questions
- An investor receives dividends on an ADR. What is a possible additional consideration compared to dividends from U.S.…
- A shareholder owns 100 shares at $60 each. After a 3-for-2 split, how many shares will the shareholder have and what…
- A company issues warrants with a strike price above the current stock price. What is the primary reason an investor…
- A company skips two years of dividend payments on its cumulative preferred stock. The next time it pays a dividend,…