Characteristics of Common Shares

Very Easy Equity Markets And Instruments Common Shares

Common shares represent ownership in a corporation and entitle the shareholder to various rights. One of the fundamental rights of a common shareholder is the right to vote on corporate matters. Which of the following statements correctly describes a characteristic of common shares?

Common shareholders have a fixed dividend rate.

Common shareholders typically have voting rights in company decisions.

Common shares have priority over preferred shares in liquidation.

Hint

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