The Difference Between Common and Preferred Stock Is That Preferred

question 34

Multiple Choice

The difference between common and preferred stock is that preferred stock

• A)may or may not receive dividends.
• B)has predictable income and more safety.
• C)has greater potential for capital appreciation.
• D)is issued more frequently than common stock.

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Definitions:

Nervous

Relating to the nerves or the nervous system, responsible for transmitting messages throughout the body.

Digestion

The biological process by which food is broken down into smaller components, so the body can absorb and utilize nutrients.

Endocrine System

The system of glands that produce and secrete hormones into the bloodstream to regulate the body's growth, metabolism, and function.

Lymph Node

A small, bean-shaped structure that is part of the body's immune system, filtering lymph and trapping pathogens and foreign particles.