Which of the Following Is True of Preferred Stock

question 11

Multiple Choice

Which of the following is true 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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