Series 7 Exam Question 162: Answer and Explanation

Question: 162

Which of the following have ownership positions in a corporation?

I. Convertible bondholders

II. Convertible preferred stockholders

III. Common stockholders

IV. Mortgage bondholders

• A. II and III
• B. I, II, III, and IV
• C. II and IV
• D. II only

Correct Answer: A

Explanation:

A. Common stockholders have equity (ownership) positions, as do preferred stockholders. However, bondholders are creditors, not owners.