Abigail and Pamela both have stocks in the Rondante Group. However, if in the future the company goes out of business, Pamela will have a claim on the assets of the company before Abigail. Also, she is given higher priority when the company pays the dividends to all its stockholders. Unlike Abigail, Pamela is a _____.

Question

Quizplus · Accepted Answer

Pamela is a preferred stockholder, which means she has a higher claim on assets and dividends compared to common stockholders like Abigail.

Abigail and Pamela Both Have Stocks in the Rondante Group