Both Common and Preferred Stock Carry the Same Degree of Investment

question 267

True/False

Both common and preferred stock carry the same degree of investment risk for the stockholder.

---

Definitions:

Flexible Benefits Program

A benefits plan that allows employees to choose from a range of benefit options to customize their compensation package according to their personal needs and preferences.

Stock Options

These are contracts that give the holder the right to buy or sell shares of a stock at a predetermined price within a specific time period.

Option Holders

Individuals or entities that possess the rights to execute the purchase or sale of a specific asset at a specified price before the option expires.

Stock Ownership Plans

Employee benefit plans that provide workers with an ownership interest in the company through stock ownership, often aimed at improving employee motivation and loyalty.