Which of the Following Is not a Basic Right of Common

question 32

Multiple Choice

Which of the following is not a basic right of common shares?

• A)right to share in profits and losses
• B)right to participate in the management of the company
• C)right to vote in the selection of the board of directors for the corporation
• D)right to share in the assets upon liquidation

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Definitions:

Balanced Funds

Mutual funds that invest in a mix of asset classes, typically stocks and bonds, to provide a balance between risk and return.

Unit Investment Trust

An investment company that offers a fixed portfolio of securities in a one-time public offering, and is structured to provide a specific investment objective.

Net Asset Value

The total value of a fund's assets minus its liabilities, often used to calculate the price of a share in a mutual fund or an ETF.

Open Market

A market where goods, services, and financial instruments are traded freely, with prices determined by supply and demand.