Which statement about holders of preferred stock is true?
A) Shareholders hold stock in common.
B) Shareholders have a say in electing the board of directors.
C) Shareholders will be the last in line to recoup investment if the company goes out of business.
D) Shareholders have first claim on dividends.
E) Shareholders have to be repaid on their investment.

Question

Quizplus · Accepted Answer

Preferred stockholders have priority over common stockholders when it comes to dividends, meaning they receive dividends before common stockholders do.

Which Statement About Holders of Preferred Stock Is True