Which of the Following Is Not True Regarding Preferred Stock

question 2

Multiple Choice

Which of the following is not true regarding preferred stock?

• A) Preferred stockholders have rights to the assets of the corporation before common stockholders.
• B) Preferred stockholders have priority over common stockholders in receiving dividends.
• C) Preferred stock has greater potential for capital appreciation than common stock.
• D) The price of preferred stock is less volatile than the price of common stock.

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Definitions:

Prefix

A morpheme added at the beginning of a word to adjust or qualify its meaning.

Combining Vowel

A vowel, often 'o' or 'i', used in medical terminology to ease the pronunciation between the word root and the suffix or between two word roots.

Cutting Out

The act of removing or excising a piece of material or a part of a structure.

Excision

A surgical procedure involving the removal of tissue, an organ, or other body part.