Stock Designated as Preferred Usually Has Preferential Rights Over Other

question 110

True/False

Stock designated as preferred usually has preferential rights over other classes of stock relative to dividends and liquidating distributions.

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Definitions:

Unrealized Loss

A decrease in the value of an investment or asset that has not been sold, thus the loss has not been realized or converted into an actual loss.

Fair Value

The price at which an asset would be bought or sold in an orderly transaction between market participants at the measurement date.

Trading Investments

Securities bought and sold for the purpose of profiting from short-term price fluctuations.