Question

Rights and privileges of common stockholders Aa Aa Larry Nelson holds 1,000 shares of General Electric (GE) common stock. As a stockholder, he has the right to be involved in the election of its directors, who are responsible for managing the company and achieving the company's obiectives True or False: Larry will receive dividends together with preferred stockholders. True O False Larry also holds 2,000 shares of common stock in a company that only has 20,000 shares outstanding. The company's stock currently is valued at $50.00 per share. The company needs to raise new capital to invest in production. The company is looking to issue 5,000 new shares at a price of $40.00 per share. Larry worries about the value of his investment. .If the company issues new shares and Larry makes no Larry's current investment in the company is$ additional purchase, Larry's investment will be worth This scenario is an example of . Larry could be protected if the firm's corporate charter includes a provision If Larry exercises the provisions in the corporate charter to protect his stake, his investment value in the firm will become

Answer 1

True, Common stock have voting rights

False, Preferred stockholders gets first preference and are paid first.

Step-by-step explanation:

Answer 2

True

Because larry is a shareholder in the company and therefore involved in the management.