Question

In which of the following ways does preferred stock differ from common stock?

A. Preferred stock carries voting rights for its ownership.
B. Preferred stock must be purchased through a broker-dealer.
C. Preferred stock may have a cumulative dividend feature.
D. In the event of a corporate liquidation, preferred stockholders are paid last.

Answer 1

Preferred stock differs from common stock in several ways, including voting rights, purchase method, dividend features, and payout priority during liquidation.

Preferred stock differs from common stock in the following ways: