A Difference Between Preferred Stock and Common Stock Is Preferred

question 2

Multiple Choice

A difference between preferred stock and common stock is preferred shareholders ________.

• A)have voting rights,while common shareholders do not
• B)have the right to share in any assets left if the company goes out of business after both the creditors and common shareholders receive their share
• C)have the right to buy new shares in order to maintain their percentage ownership before the company can issue new shares to the general public
• D)must receive their dividends before any of the common shareholders are paid