Preferred stock has a priority over common stock with regard to the company's ______.
A) assets only
B) voting rights only
C) dividends only
D) assets and dividends

Question

Quizplus · Accepted Answer

Preferred stockholders have a priority over common stockholders with regards to receiving dividends, as well as in the event of a bankruptcy or liquidation where assets are distributed. Therefore, the correct answer is option D as preferred stock has priority over common stock in both assets and dividends.

Preferred Stock Has a Priority Over Common Stock with Regard