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

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Definitions:

Behavior Genetics

The study of the role genetics and the environment play in shaping behaviors.

Heredity

The hereditary passing of traits from parents to their children.

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A mental health disorder characterized by persistent feelings of sadness, loss of interest, and various emotional and physical conditions.

Charles Darwin

A 19th-century naturalist and geologist known for his theory of evolution by natural selection.