Series 7 - General Securities Representative Exam

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Which of the following is TRUE regarding shareholder rights to common stockholders?

Preemptive rights to buy shares before they are offered to others only applies to preferred stockholders
A
A common stockholder has no rights to dividends
B
A shareholder cannot vote on stock splits and dividends
C
A shareholder has the right to see a corporation's income statement and balance sheet
D

Explanations

Common stockholders have preemptive rights. They have rights to dividends and can vote on splits and dividends. They also have the right to see the corporate income statement and balance sheet

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