Which of the following is incorrect with respect to preferred stock?
A) Preferred stock is largely owned by other companies rather than individual investors.
B) Preferred stock takes preference over common stock in bankruptcy proceedings.
C) Preferred stock dividends do not grow.
D) All of these choices are correct.

Question

Quizplus · Accepted Answer

All the statements provided are correct with respect to preferred stock. Preferred stock is often held by other companies due to its tax advantages, it does take preference over common stock in bankruptcy proceedings, and its dividends are typically fixed and do not grow like common stock dividends might.

Which of the Following Is Incorrect with Respect to Preferred