Preferred stockholders have a priority over common stockholders as to

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Preferred stockholders have a priority over common stockholders as to both dividends and assets in the event of liquidation. This means that in case the company goes bankrupt and its assets are being distributed, preferred stockholders will be paid their share of assets before common stockholders. Similarly, if the company is profitable and decides to distribute dividends, preferred stockholders have a priority over common stockholders. However, preferred stockholders usually do not have voting rights or have limited voting rights compared to common stockholders.

Preferred Stockholders Have a Priority Over Common Stockholders as to