Place the number corresponding to each of the following characteristics in the appropriate section of the diagram. If a characteristic applies to both common and preferred shares, place that number in the overlapping section.

1. Receive a lower priority than creditors in terms of their claim to the assets of the business in the event of liquidation.

2. The shares may have cumulative dividends.

3. The shares carry voting rights.

4. Every corporation has this type of share.

5. The shares may be convertible.

6. They are part of a corporation€™s share capital.

Transcribed Image Text:

Preferred Common shares shares