Which of the Following Is an Advantage of Preferred Stock

question 94

Multiple Choice

Which of the following is an advantage of preferred stock?

• A) Preferred shareholders generally receive a fixed amount of dividends before common stockholders do.
• B) Preferred shareholders are guaranteed that they will not take a loss on their investment.
• C) Preferred shareholders have higher voting rights than common shareholders.
• D) Preferred shareholders may sell their shares for a price higher than that of common stock.

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Definitions:

Id

The unconscious mind, motivated for pleasure and wish fulfillment.

Superego

In psychoanalytic theory, the part of the personality responsible for moral standards and conscience.

Inferiority Complex

The belief that one is of lower status or weaker than others.

Alfred Adler

An Austrian psychologist and founder of the school of individual psychology, who emphasized the importance of feelings of inferiority and community in shaping human behavior.