Which of the Following Statements Best Describes Preferred Stocks

question 15

Multiple Choice

Which of the following statements best describes preferred stocks?

• A) Preferred stockholders have a priority to income but not to liquidation proceeds over bondholders in the event of bankruptcy.
• B) The preferred stock of a given firm is generally less risky to investors than the same firm's common stock.
• C) Preferred dividends are not generally cumulative.
• D) A big advantage of preferred stock is that dividends on preferred stocks are tax deductible by the issuing corporation.

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Definitions:

Sexual Harassment

Unwelcome sexual advances, requests for sexual favors, or other verbal or physical harassment of a sexual nature.

Exercise

Physical activities undertaken to maintain or improve health and fitness.

Young Adults

Individuals in the age group that follows adolescence, typically ranging from 18 to 25 years old, characterized by further development of personal and economic independence.

Stress

A physical or psychological response to internal or external pressures, resulting in mental and physical symptoms ranging from discomfort to severe health issues.