Common stockholders have the right to vote on key corporate issues, but also have the last right to the assets or profits of a company.

Question

Question 22 options:

True

False

Answer 1

True

Common stockholders do have the right to vote on key corporate issues, such as electing the board of directors and approving major corporate transactions. However, they are last in line to receive assets or profits of the company, as they are paid after creditors and preferred stockholders in the event of liquidation or dividend distribution.