Ellie owns stock in rotary technologies. Her stock provides a priority claim on dividend payments and on the firm's assets in the event of liquidation. However, her ________ stock ownership does not offer her voting rights.

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21-12-2022
Business

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Ellie owns stock in rotary technologies. Her stock provides a priority claim on dividend payments and on the firm's assets in the event of liquidation. However, her ________ stock ownership does not offer her voting rights.

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Tom056 Tom056 · Answer 1 · 2022-12-24T07:25:12-05:00

Ellie owns stock in rotary technologies. Her stock provides a priority claim on dividend payments and on the firm's assets in the event of liquidation. However, her preferred stock ownership does not offer her voting rights.

Ownership or equity in a company is referred to as "stock." Common stock and preferred stock are the two different categories of equity. Dividends or asset distribution are more likely to go to preferred stockholders than to regular stockholders. Depending on the offering, each preferred stock's specifics will vary. Preferred investors, unlike regular stockholders, have fewer rights, which typically do not include the power to vote.

To learn more about preferred shareholders refer here

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