Preferred Shares Are Considered a Voting "Class" of Shares

question 21

True/False

Preferred shares are considered a voting "class" of shares.

---

Definitions:

Unsecured Creditor

A creditor that extends credit without requiring specific collateral, bearing higher risk if the borrower defaults.

Claim

A demand for something due or believed to be due, typically a request for payment in accordance with an insurance policy or other formal agreement.

Involuntary Petition

A legal process initiated by creditors requesting a court to declare a debtor bankrupt when the debtor hasn't voluntarily filed for bankruptcy.

Order for Relief

A court order in bankruptcy proceedings that grants the petitioner, usually a debtor, protection from creditors and sanctions the commencement of bankruptcy proceedings.