Asked by
Tyler Hockey
on Nov 08, 2024Verified
Which of the following common shareholder rights kicks in when a merger is proposed?
A) The right to share proportionately in dividends paid.
B) The right to share proportionately in remaining assets from a liquidation.
C) The right to vote for directors.
D) Preference over preferred shareholders in the payment of dividends.
E) The right to vote on shareholder matters of great importance.
Shareholder Rights
The entitlements granted to shareholders of a corporation, including the right to vote on corporate matters, receive dividends, and share in the assets upon dissolution.
Proposed Merger
A plan or offer to combine two or more companies into one entity, subject to approval by regulators and shareholders.
Common Shareholder
An individual or entity that owns shares in a company, granting them ownership equity and usually voting rights.
- Absorb the foundational characteristics and rights associated with common and preferred stocks.
- Know the rights of shareholders in the event of mergers, liquidations, or new stock issues.
Verified Answer
GD
Learning Objectives
- Absorb the foundational characteristics and rights associated with common and preferred stocks.
- Know the rights of shareholders in the event of mergers, liquidations, or new stock issues.