BACHELOR OF BUSINESS ADMINISTRATION

BUSINESS ADMINISTRATION

BUSINESS ECONOMICS

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
A type of stock without voting privileges
A
preferred
B
common
C
uncommon
D
dividend
Explanation: 

Detailed explanation-1: -Preferred typically have no voting rights, whereas common stockholders do. Preferred stockholders may have the option to convert shares to common shares but not vice versa. Preferred shares may be callable where the company can demand to repurchase them at par value.

Detailed explanation-2: -One main difference from common stock is that preferred stock comes with no voting rights. So when it comes time for a company to elect a board of directors or vote on any form of corporate policy, preferred shareholders have no voice in the future of the company.

Detailed explanation-3: -Non-Voting Preferred Stock means preferred stock that is not entitled in the ordinary course to vote for the election of directors.

Detailed explanation-4: -This type of share is usually implemented for individuals who want to invest in the company’s profitability and success at the expense of voting rights in the direction of the company. Preferred stock typically has non-voting qualities.

Detailed explanation-5: -Voting rights: Common stocks offer stockholders the opportunity to vote in company shareholder meetings on factors that impact their stock ownership. Preferred stockholders give up this right in exchange for consistent dividend payouts.

There is 1 question to complete.