The Most Important Priority That an Investor in Preferred Stock

question 141

True/False

The most important priority that an investor in preferred stock enjoys is receiving cash dividends before common shareholders are paid any cash dividends.

---

Definitions:

U.S. Government

The federal government of the United States, a constitutional republic comprising the Executive, Legislative, and Judicial branches.

Market-Value Weighted

An indexing method where the weight of each constituent security in an index or portfolio is based on its total market capitalization, favoring larger companies.

Dow Jones Industrial Average

A stock market index that measures the stock performance of 30 large companies listed on stock exchanges in the United States.