The Difference Between Common and Preferred Stock Is That Preferred

question 12

Multiple Choice

The difference between common and preferred stock is that preferred stock

• A)may or may not receive dividends.
• B)has more predictable income and more safety.
• C)has greater potential for capital appreciation.
• D)is issued more frequently than common stock.

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Definitions:

Mouth

The opening in an animal's body that is the beginning of the digestive tract, through which food is ingested.

Brush Border

A microvillar structure that lines the intestine's absorptive cells, enhancing the surface area for digestion and absorption of nutrients.

Microvilli

Microscopic cellular membrane protrusions that increase the surface area for absorption, especially in the epithelial cells of the small intestine.

Surface Area

The total area that the surface of an object occupies, which is significant in processes such as absorption and evaporation.