Question

7 Name 5 rights and privileges that common shareholders may get.

8 The ___________________________right means that you can sell or gift your common stock to anyone.

9 There are times when preferred stock shares have voting privileges. Name 2 possibilities:

Answer 1

7-

• Shareholders have voting power as they can vote in management key decisons.
• They having the right of ownership
• They can also tranfer their ownership to some other person.
• They have right and privelege to the company's documents, thereby having transparency.
• They can also sue the wrong people for their acts such as fraud, money laundering, insider information, corporate governance failure etc

8- Preemptive rights: means that you can sell or gift your common stock to anyone.

9-

• When it is already written in the articles of association
• When the company is issyuing new shares or electing directors, it can ask for the preferred shareholders' vote.