Common Stock Has Seniority Relative to Preferred Stock

question 4

True/False

Common stock has seniority relative to preferred stock.

---

Definitions:

Accounts Receivable

Money owed to a business by its clients or customers for goods or services that have been delivered or used but not yet paid for.

Security

A financial instrument representing an ownership position, a creditor relationship with a governmental body or a corporation, or rights to ownership as represented by an option.

Investment Contract

A legal agreement involving a monetary investment in a scheme with the expectation of a return on investment primarily from the efforts of others.