Question & Answer: Of the following characteristics, which is not generally regarded as a right of common shareholder…..

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

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