Which of the Following Is True of Preferred Stock

question 145

Multiple Choice

Which of the following is true of preferred stock?

• A)Preferred stockholders generally receive a fixed amount of dividends before common stockholders do.
• B)Preferred stockholders are guaranteed that they will not take a loss on their investment.
• C)Preferred stockholders have higher voting rights than common stockholders.
• D)Preferred stockholders may sell their shares for a price higher than that of common stock.

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