What is a right a preferred stockholder often gives up when purchasing preferred stock?

A) Voting rights
B) Preemptive rights
C) Ability to sell stock
D) A and B are correct.

Question

What is a right a preferred stockholder often gives up when purchasing preferred stock?A)  Voting rightsB)  Preemptive rightsC)  Ability to sell stockD)  A and B are correct.

Mukul SAXENA · Accepted Answer

Final Answer : D, Explanation :  Preferred stockholders often give up both voting rights and preemptive rights, which are typically held by common stockholders. Voting rights allow shareholders to vote on company matters, and preemptive rights allow existing shareholders to purchase new shares before the company offers them to the public.

What is a right a preferred stockholder often gives up when purchasing preferred stock?

A) Voting rights
B) Preemptive rights
C) Ability to sell stock
D) A and B are correct.

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