Preferred Stock Receives First Preference on Voting Rights

question 135

True/False

Preferred stock receives first preference on voting rights.

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Definitions:

Common Stock

A form of corporate equity ownership, a type of security that represents ownership in a corporation and a claim on part of the corporation's profits.

Note Payable

A written promise to pay a specific sum of money, usually with interest, on a certain date or dates to the holder of the note.

Accounts Payable

Liabilities representing amounts owed to creditors for goods and services received but not yet paid for.

Additional Paid-in Capital

The amount of money paid by investors for shares above the par value, typically reflecting the excess over the nominal value of shares issued.