A class of stock in which the investor has preferential rights over the common shareholders to dividends and the company's assets is known as classified stocks.

Question

A class of stock in which the investor has preferential rights over the common shareholders to dividends and the company's assets is known as classified stocks.​

Quizplus · Accepted Answer

The correct term for a class of stock where the investor has preferential rights over common shareholders to dividends and the company's assets is "preferred stock," not classified stocks. Classified stocks refer to the categorization of stock into different classes with distinct rights and privileges.

A Class of Stock in Which the Investor Has Preferential