Which of the Following Is Not Normally a Preference Given

question 47

Multiple Choice

Which of the following is not normally a preference given to the holders of preferred stock?

• A)The right to receive a specified amount of dividends prior to any being paid to common stockholders.
• B)The right to vote before the common stockholders at the corporation's annual meeting.
• C)The right to receive preference over common stockholders as to the distribution of assets during a liquidation process.
• D)All of these are preferences given to preferred stock.

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Definitions:

Holder

An individual or entity that possesses or owns a particular document, often used in the context of financial instruments.

Payable to Bearer

A financial instrument or document that allows the person in possession (the bearer) to receive the assets specified therein, without the need to prove identity.

Identified Person

An individual who has been recognized or singled out from others based on specific criteria or identifiers.

Indorsed

means to have a signature added to the back of a financial instrument, thereby authorizing its use or transfer to another party.