Which of the Following Is a Feature of a Preferred

question 64

Multiple Choice

Which of the following is a feature of a preferred stock?

• A)Preferred stockholders have priority over debt holders, with regard to the distribution of earnings and assets of the firm.
• B)Preferred stockholders can elect the members of the board of directors and also vote on corporate issues.
• C)The firm generally pays different amounts of preferred stock dividends each year.
• D)Preferred stockholders have the right to receive shares of any new common stock issues in proportion to their current ownership holdings.
• E)Preferred stockholders have a higher priority claim to distributions made by the firm than common stockholders.

---

Definitions:

Great Britain

An island in the North Atlantic Ocean off the northwest coast of continental Europe, comprising England, Scotland, and Wales.

Endangered Children

Refers to children who are in situations that severely compromise their physical, mental, or emotional well-being.

Foster Families

Families that provide a temporary home for children who cannot live with their biological parents.

Christmas Cards

Greeting cards sent to express good wishes during the Christmas season.