Juanita owns stock in Elite Technologies. Her stock provides a priority claim on dividend payments and on the firm's assets in the event of liquidation. However, her ________ stock ownership does not offer her voting rights.

Question

Quizplus · Accepted Answer

Preferred stock gives its owners preference in the payment of dividends and an earlier claim on assets if the company is liquidated. However, preferred stock normally does not include voting rights in the firm.

Juanita Owns Stock in Elite Technologies