Who are the real owners of a corporation? 2. What privileges do preferred stockholders have over common stockholders? 3. Which class of stockholders reaps greater benefits from a highly profitable corporation? Explain your answer.

Question

Kamila Velez

Business

9 November, 05:12

Who are the real owners of a corporation? 2. What privileges do preferred stockholders have over common stockholders? 3. Which class of stockholders reaps greater benefits from a highly profitable corporation? Explain your answer.

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Answers (1)

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Ashlyn Fitzpatrick · Answer 1

The real owners of a corporation are the shareholders. Preferred stockholders have voting right while common stockholders do not. Preferred stockholders reaps greater benefits from a highly profitable corporation.

Explanation:

Preferred shareholders buy preferred stock while common shareholders buy common stock.

The main difference between preferred and common stock is that preferred stock gives no voting rights to shareholders while common stock does.

Preferred shareholders have priority over a company's income, meaning they are paid dividends before common shareholders.

In a liquidation, preferred stockholders have a greater claim to a company's assets and earnings.