Of the following characteristics, which is not generally regarded as a right of common shareholders?
Select one:
a. Preemptive right
b. Voting rights
c. Preference in liquidation
d. Transferability of shares
Expert Answer
a. Preemptive right-let the buyer beware in common stock issue
b. Voting rights-Common shareholders has the right in the annual general meeting
c. Preference in liquidation-Preference shares has preference in liquidation
d. Transferability of shares-Common shares has easy transferability rights
So common shareholders never has preference
So the option is C.Preference in liquidation