Which of the Following Is Not Correct Regarding Preferred Stock

question 9

Multiple Choice

Which of the following is not correct regarding preferred stock?

• A) Preferred stocks are considered to be safer investments than common stocks.
• B) Owners of preferred stock have first claim to a corporation's assets after creditors in a bankruptcy.
• C) Owners of preferred stock receive cash dividends before common stockholders receive their dividends.
• D) The dollar amount of the dividend on preferred stock is known before the stock is purchased.
• E) The yield on preferred stocks is often lower than the yield on corporate bonds.

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Definitions:

Sensation and Perception

Sensation is the process by which our sensory receptors and nervous system receive stimuli from the environment, while perception is the process of organizing and interpreting sensory information.

Clinical Work

The practical application of medical and psychological principles and methods to diagnose, treat, and prevent illness or dysfunction.

Psychometric Psychologists

Psychologists who specialize in measuring psychological attributes like intelligence, personality, and attitudes.

Mental Abilities

The cognitive functions and capacities of the brain, including reasoning, memory, problem-solving, and intelligence.