CFA Practice Question

There are 233 practice questions for this study session.

CFA Practice Question

True or False? Company A has two classes of shares: preferred shares and common shares. Preferred shareholders don't have any voting rights. The ownership structure of this company indicates a weak corporate governance practice.
Correct Answer: False

Preferred stock does not usually have voting rights. Preferred shareholders have priority over common stockholders on earnings and assets in the event of liquidation. Concerns about ownership structure refer to issues regarding common shares.

User Contributed Comments 4

User Comment
gulfa99 the probability of picking the right answer is 50:50.
I was not lucky
papajeff If not knowing the difference between common and preferred shares is unlucky.....yeah, tough break.
gill15 if this Q actually required 50:50 then I would agree with you...

You would not be elected by the nomination board...
davidkhang LOL... this was too funny not to comment.
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