Understanding the Characteristics of Common Shares

Common shares are a vital component of the equity market, providing investors with a stake in a company's ownership. They come with specific rights and can influence a company's governance. One of these rights is the ability to vote on important corporate matters, such as the election of the board of directors and approving significant corporate transactions. However, common shareholders also face certain risks, particularly related to dividends and bankruptcy.

Which of the following statements accurately describes common shares?