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Homework answers / question archive / Which of the following shareholder rights is most commonly enhance in an issue of preference shares? a
Which of the following shareholder rights is most commonly enhance in an issue of preference shares?
a. The right to vote for the board of directors. b. The right to maintain one's proportional interest in the entity. c. The right to receive a full cash dividend before dividends are paid to other classes of share capital. d. The right to vote on major corporate issues.
Answer
c .
Explanation
The correct option is C "The right to receive a full cash dividend before dividends are paid to other classes of share capital". Preferred stock holders will receive first dividend before common stock holders and other stocks.
