Preferred stock has priority over common stock in ________.
A)voting rights
B)electing the board of directors
C)payment of dividends
D)none of the above

Question

Quizplus · Accepted Answer

Preferred stock holders are entitled to receive dividends before the common stock holders. Therefore, preferred stock has priority over common stock in the payment of dividends. However, preferred stock may not necessarily have priority in voting rights or electing the board of directors.

Preferred Stock Has Priority Over Common Stock in ________