Understanding Stock Types

What type of stock typically comes with voting rights?

• Preferred stock

• Treasury stock

• Common stock

• Convertible bonds

Do preferred shareholders have voting rights?

• No, preferred shareholders generally do not have voting rights.

• Preferred shareholders can vote on major corporate decisions.

• Yes, preferred shareholders always have voting rights.

• Preferred shareholders have limited voting rights.

Are dividends for common stock guaranteed?

• Yes, dividends for common stock are guaranteed.

• No, dividends for common stock are not guaranteed.

• Dividends for common stock are always paid annually.

• Common stock dividends are fixed and cannot change.

How do preferred stock dividends compare to common stock dividends?

• Preferred stock dividends are always higher than common stock dividends.

• Preferred stock dividends are fixed and paid before common stock dividends, which can vary and are discretionary.

• Preferred stock dividends are paid after common stock dividends.

• Common stock dividends are guaranteed and fixed, while preferred stock dividends can vary.

In the event of bankruptcy, who gets paid first, common or preferred shareholders?

• Both common and preferred shareholders are paid equally.

• Preferred shareholders are paid last.

• Preferred shareholders get paid first.

• Common shareholders get paid first.

What is a key characteristic of common stock?

• Ownership in a company with voting rights.

• Ownership in a company without any financial risk.

• Guaranteed dividends for all shareholders.

• No voting rights for shareholders.

What is a key characteristic of preferred stock?

• No voting rights

• Fixed dividend payments

• Guaranteed capital appreciation

• Variable interest rates

Can common stock dividends fluctuate?

• Yes, common stock dividends can fluctuate.

• Yes, common stock dividends can only increase.

• No, common stock dividends are guaranteed to remain the same.

• No, common stock dividends are fixed.

Are preferred stock dividends usually fixed or variable?

• fixed

• random

• variable

• conditional

What happens to common shareholders if a company goes bankrupt?

• Common shareholders gain additional shares in the company after bankruptcy.

• Common shareholders may lose their entire investment and receive little to no compensation.

• Common shareholders receive full compensation for their investments.

• Common shareholders are prioritized over creditors in asset distribution.