SIE practice questioneasyCommon Stock
Which of the following best describes a characteristic of common stockholders?
- AThey receive fixed dividends
- BThey have first claim on assets in liquidation
- CThey have voting rights in corporate elections✓ Correct answer
- DThey are guaranteed a return of principal
Explanation
Why C — They have voting rights in corporate elections
Common stockholders typically have voting rights, allowing them to elect the board of directors. They do not have first claim on assets, guaranteed dividends, or assured principal return, which are features of other investments.
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