What Is the Difference Between Common and Preferred Stocks

question 30

Multiple Choice

What is the difference between common and preferred stocks?

• A)Unlike holders of common stock, those who own preferred stock usually do not get voting rights at the annual corporate meeting.
• B)Those who hold common stocks are paid dividends before those who hold preferred stocks are paid.
• C)Unlike preferred stock, the amount of the dividend paid to those who own common stock is fixed and never changes.
• D)Unlike preferred stock, common stock is the least popular form of stock.

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Definitions:

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The principle that dictates the specific conditions under which revenue can be recognized by an entity in its financial statements.

Revenue Recognition

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