One Difference Between Common and Preferred Stock Is That Preferred

question 87

Multiple Choice

One difference between common and preferred stock is that preferred stock

• A) does not pay dividends.
• B) offers more predictable income and more safety.
• C) has greater potential for capital appreciation.
• D) is issued more frequently than common stock.

---

Definitions:

Negotiable

Relates to legal instruments, such as checks or bills of lading, that can be transferred from one party to another, changing ownership by endorsement.

Particular Fund

A specific investment fund targeted toward certain assets or investment strategies.

Law of Negotiable Instruments

A branch of law that deals with the rights and duties of parties to documents like checks, bills of exchange, and promissory notes.

Assignable

Capable of being transferred or made over to someone else, typically referring to rights or property.