Question

Preferred stock has no voting rights.
1) true
2) false

Answer 1

1) true.

Preferred stock usually has no voting rights, which means holders are typically not able to vote on corporate matters. There can be exceptions, but they are not the norm.

Step-by-step explanation:

The statement that preferred stock has no voting rights is generally true. Preferred stock usually has no voting rights, which means holders are typically not able to vote on corporate matters. There can be exceptions, but they are not the norm.

Preferred stockholders typically have no right to vote on corporate matters, such as elections for the board of directors or proposed mergers. However, there can be exceptions where preferred stock does come with voting rights, but this is less common and typically specified in the terms of the preferred stock.