The "preferred" feature of preferred stock means that it normally will provide a higher expected return than will common stock.

Name: The "preferred" feature of preferred stock means that it normally will provide a higher expected return than will common stock.
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Quizplus · Accepted Answer

The "preferred" in preferred stock refers to the preferential treatment in dividend payments and upon liquidation, not necessarily a higher expected return compared to common stock.

The "Preferred" Feature of Preferred Stock Means That It Normally