Asked by
Michele Blockinger
on Dec 20, 2024Verified
Which class of investors do not have claims on the income and assets of the firm prior to preferred shareholders?
A) Bondholders
B) Creditors
C) Lenders such as banks
D) Common shareholders
Preferred Shareholders
Preferred shareholders are investors who own shares of a company's stock with preferential rights over common stock, particularly in dividend payments and upon liquidation.
Common Shareholders
Individuals or entities that own shares in a corporation, giving them rights to dividends and a say in company matters through voting.
Bondholders
Individuals or institutions that hold the debt securities issued by corporations or governments, thus lending them money in exchange for periodic interest payments and the return of principal at maturity.
- Comprehend the principle of preemptive rights and the order of payment within corporate hierarchies.
Verified Answer
ER
Learning Objectives
- Comprehend the principle of preemptive rights and the order of payment within corporate hierarchies.