Preferred Stock Typically Has a Par Value, and the Dividend

question 20

True/False

Preferred stock typically has a par value, and the dividend is often stated as a percentage of par.The par value is also important in the event of liquidation, as the preferred stockholders are generally entitled to receive the par value before anything is given to the common stockholders.

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Definitions:

Avulsion

The forcible separation or tearing away of a body part or tissue.

Forcibly

Using physical strength, power, or violence to make something happen or to make someone do something.

Tinea

A fungal infection of the skin, also known as ringworm, that can affect various parts of the body and is characterized by ring-shaped, itchy rashes.

Ringworm

A fungal infection of the skin characterized by red, itchy, circular patches.