A financial instrument that allows the stockholders to receive their dividend first, if one is paid by the company, is known as _____.
A) a corporate bond
B) preferred stock
C) common stock
D) a government security

Question

Quizplus · Accepted Answer

Preferred stock is a type of stock that typically pays a fixed dividend before any dividends are paid to common shareholders. This means that if a company pays a dividend, preferred stockholders receive their dividend first before common stockholders.

A Financial Instrument That Allows the Stockholders to Receive Their