Which of the Following Is an Advantage of Preferred Stock

question 144

Multiple Choice

Which of the following is an advantage of preferred stock?

• A) In the event of liquidation, preferred shareholders are guaranteed to get their investment back in full.
• B) In the event of liquidation, preferred shareholders have first claim on remaining corporate assets.
• C) In the event of liquidation, preferred shareholders may sell their shares for higher amounts than common stock.
• D) In the event of liquidation, preferred shareholders may retain their proportionate share of voting rights.

---

Definitions:

Depression

A common and serious mood disorder characterized by persistent feelings of sadness, hopelessness, and a lack of interest or pleasure in activities.

Exaggerated Response

An overly dramatic or intensified reaction to a situation or stimulus, often beyond what is considered normal.

Grief Counseling

Professional support provided to individuals experiencing intense sorrow and emotional pain following a loss, to help them navigate the grieving process.

Support Groups

Gatherings of individuals who share common experiences or challenges, offering mutual assistance and empathy.