Stockholders Prefer to Invest in Preferred Stock Because

question 131

Multiple Choice

Stockholders prefer to invest in preferred stock because

• A) preferred stock confers preferred voting rights.
• B) preferred stock can always be converted to common stock if they desire.
• C) the dividends are generally increased each year.
• D) the dividends are paid on preferred stock before they are paid on common stock.

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Definitions:

Collective Bargaining Legislation

Laws that govern the negotiating process between employers and groups of employees aimed at reaching agreements that regulate working conditions.

Unfair Labour Practice

Actions by employers or unions that violate the rights of employees or the collective bargaining agreement.

Collective Agreement

A written contract of employment, typically negotiated by an employer and representatives of the workforce, outlining terms and conditions of employment.

Lockout

An action in which the employer prevents employees from working.