Common Stock Always Carries a Preference for Receiving Dividends Over

question 165

True/False

Common stock always carries a preference for receiving dividends over preferred stock.

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Definitions:

GAAP

Generally Accepted Accounting Principles; a common set of accounting rules and standards used in the United States.

Par Value

The face value of a bond or stock as stated by the issuing company, which may differ from its market value.

Undervalued

A term used to describe assets or securities that are selling for a price presumed to be below their true intrinsic value.