Which of the Following Is True Regarding Preferred Stock

question 140

Multiple Choice

Which of the following is true regarding preferred stock?

• A)It gets rights to the distribution of profits behind common stockholders.
• B)It has an optional dividend rate and frequency.
• C)It has the potential for greater capital appreciation than common stock.
• D)It is a safer and more conservative investment than common stock.

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Definitions:

Money Inflows

Financial resources entering a specific area, system, or entity, such as the funds received by a business or economy from external sources.

Value Of The Dollar

This refers to the purchasing power of the U.S. dollar, indicating how much goods and services one dollar can buy, both domestically and internationally.

Foreign Products

Goods or services produced in one country and sold or traded in another.

Demand

A schedule of quantities of a good or service that people will buy at different prices; represented by D.