Lindsey Holt owns stock in the Galloway Gems Company.She knows she will receive a $1.50 dividend each quarter.Given this,you know for sure that she purchased which type of stock?

Question

Quizplus · Accepted Answer

Preferred stock typically pays a fixed dividend rate on a regular basis, usually quarterly. Common stock, on the other hand, may or may not pay dividends and their payment is not guaranteed. Therefore, Lindsey Holt likely purchased preferred stock.

Lindsey Holt Owns Stock in the Galloway Gems Company