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Sydney Kimball
on Dec 02, 2024

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Preferred stock is:

A) preferred over common stock with regard to its claim on assets if the firm fails.
B) preferred over common stock with regard to its claim on income for dividend payment.
C) preferred over common stock with regard to voting rights.
D) a and b

Preferred Stock

A class of ownership in a corporation with a fixed dividend that is paid before any dividends are paid to common stockholders, typically without voting rights.

Common Stock

Shares of ownership in a corporation, giving holders voting rights and a share in the company's profits through dividends, subject to business performance.

Claim on Assets

Legal rights or interests that creditors and shareholders have on a company’s assets, usually in the event of the company's liquidation.

  • Compare and contrast preferred stock with common stock, detailing their specific attributes.
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DK
Delaney KnottnerusDec 09, 2024
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