Why Would an Investor Favor a Common Share Over a Preferred

question 110

Multiple Choice

Why would an investor favor a common share over a preferred share?

• A)To obtain a bigger potential capital gain.
• B)To obtain repayment of the face value at maturity.
• C)To obtain a fixed dividend.
• D)To obtain a fixed coupon payment.
• E)To obtain a variable dividend

---

Definitions:

Biological

Pertaining to the science of life or living organisms and their processes.

Modern Research

Contemporary studies and investigations that utilize current methodologies, technologies, and theories to explore various fields of interest.

Specific Traits

Particular distinguishing characteristics or qualities that are unique or inherent to a person, organism, or object.

Grand Theories

Comprehensive ideas or models that attempt to explain large-scale processes and phenomena across various domains of interest.