Question

Trey owns 250 shares of common stock in a toy–store company. This means that he owns a percentage of the company based on the proportion of shares he owns out of the total shares issued by the company. With this ownership he also acquires rights to:_______. a. vote and receive dividends before any other creditors. b. determine the amount of dividends that will be paid. c. vote and receive a fixed sum on a fixed date. d. vote.

Answer 1

Answer:

The correct answer is D

Explanation:

The voting right is the right which is given to the shareholders of the company to vote on the matters of the corporate policy involving the decisions on the making of the BOD (Board of Directors), making changes in the operations of the corporation, issuing securities and initiate the corporate actions.

So, when the person owns 250 shares, which means owns the percentage of the company grounded on the proportion of the shares the person owns. Therefore, the person along with ownership gets the voting rights as well.