One Difference Between Common and Preferred Stock Is That Preferred

question 73

Multiple Choice

One difference between common and preferred stock is that preferred stock

• A) does not pay dividends.
• B) offers more predictable income.
• C) has greater potential for capital appreciation.
• D) is issued more frequently than common stock.

---

Definitions:

Libel

A false written or published statement that damages a person's reputation.

Baron

A title of nobility or honor in various countries, often ranking below other noble titles such as viscount or count.

FBI

The Federal Bureau of Investigation, a U.S. governmental agency that handles investigations into federal crimes, including terrorism, cybercrime, and public corruption.

Disparagement

The act of making false or misleading statements about a business or individual's goods, services, or property, which can cause economic harm.