Characteristic of Common Shares

Very Easy Equity Markets And Instruments Common Shares

In the context of equity investments, one of the primary types of ownership shares in a company is known as common shares. Investors who own common shares typically have certain rights and privileges. Which of the following statements correctly describes a characteristic of common shares?

Common shareholders are prioritized over bondholders during liquidation.

Common shares typically provide voting rights in corporate governance.

Common shareholders receive fixed dividends, similar to preferred shares.

Hint

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