Which of the Following Is an Advantage of Preferred Stock

question 31

Multiple Choice

Which of the following is an advantage of preferred stock?

• A) Preferred shareholders are guaranteed that they will not take a loss on their investment.
• B) Preferred shareholders have higher voting rights than common shareholders.
• C) Preferred shareholders may sell their shares for a price higher than that of common stock.
• D) Preferred shareholders have the first claim on dividend funds.

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Definitions:

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Test Market

A geographic region or demographic group used to gauge the potential success of a product or service in the larger market by observing its performance in a controlled setting.

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