Holders of Common Stock Receive Certain Benefits,such as a Residual

question 229

Multiple Choice

Holders of common stock receive certain benefits,such as a residual claim,which is the:

• A)right of stockholders to be paid back for their investment before anyone else if the company ceases operation.
• B)right to oversee management of the company.
• C)right to share in any remaining assets after creditors have been paid off,should the company cease operations.
• D)continuing right to receive a share of the company's profits in the form of dividends.

---

Definitions:

U.S. Court of Appeals

A court within the federal judicial system of the United States that hears appeals from federal district courts.

No-action Letters

are statements issued by regulatory agencies indicating that the agency does not intend to take legal action against a specifically proposed activity.

Exempted Offerings

Securities offerings that are released from the registration requirements with the SEC, generally due to their limited nature.

Shareholder Proposals

Suggestions or demands made by shareholders for consideration and action by the company's board of directors.