What Is an Advantage to Being a "Preferred" Stock Holder

question 219

Multiple Choice

What is an advantage to being a "preferred" stock holder?

• A)Preferred stock holders always get to vote for the board of directors of the company.
• B)Preferred stock holders receive a better coupon interest rate.
• C)Preferred stock holders receive dividend payouts before common stock holders do.
• D)Preferred stock holders never pay commissions on their stock trades.
• E)There are no advantages to being a preferred stock holder.

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Definitions:

F.O.B Shipping Point

Free on Board Shipping Point, a term indicating that the buyer takes responsibility for goods the moment they leave the seller's premises.

Discount Period

The time frame in which a buyer may take advantage of a discount offered by a seller for early payment.

Invoice Price

The price at which a product or service is sold, typically listed on an invoice as the cost before any discounts or allowances.

Credit Terms

Conditions under which credit is extended by a seller to a buyer, detailing the repayment period, interest rate, and other rules governing the borrowing.