Question

Preferred stock is often considered a more conservative (less aggressive) investment than common stock because: a. its holders have voting right, unlike stockholders. b. it is less volatile and more like a bond. c. it never pays dividends.

Answer 1

b. it is less volatile and more like a bond

Step-by-step explanation:

Preferred stocks pay a fixed dividend and has the potential to appreciate in price.

Preferred share holders have no voting right but they are paid first before common shareholders.

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