Which of the Following Does Not Correctly Describe Preferred Stock

question 112

Multiple Choice

Which of the following does not correctly describe preferred stock?

• A) Preferred stock has a higher priority status relative to common stock.
• B) Preferred shareholders are guaranteed to receive dividends.
• C)Preferred stock does not grant voting rights.
• D)Preferred stockholders receive dividends in arrears only if the shares are cumulative.

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Definitions:

Migration Costs

Expenses and sacrifices associated with moving from one location to another, which can include monetary costs, emotional strain, and time.

Substitute Resources

Resources or inputs that can be used in place of each other in the production process.

Inelastic

Describes a situation where a change in price leads to a relatively smaller change in the quantity demanded or supplied.

Remittances

Money sent by migrants back to their home countries, often to support family members financially.