What Is the Significance of the Name Preferred Stock

question 66

Multiple Choice

What is the significance of the name preferred stock?

• A) It is the type of stock that most investors would rather have.
• B) Its claims on dividends are paid before those of ordinary share.
• C) The overall return on preferred stock is higher than that on ordinary share.
• D) This stock is available only to select individuals associated with the company.
• E) This stock provides the most powerful voting rights.

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