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SIE: Equity Securities
SIE practice questionmediumCommon Stock

Which of the following is NOT a right of common shareholders?

  1. ARight to declare dividends✓ Correct answer
  2. BRight to vote for the board
  3. CRight to receive dividends if declared
  4. DRight to inspect company records
Explanation

Why ARight to declare dividends

The board declares dividends, not shareholders. Voting and records rights exist for common holders, and they may receive dividends if declared.

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