Dividends paid to investors who purchase preferred stock are paid before dividends are paid to ordinary shareholders.

Name: Dividends paid to investors who purchase preferred stock are paid before dividends are paid to ordinary shareholders.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Preferred stockholders have a priority claim on dividends over common shareholders. They are entitled to receive their fixed dividend payments before any dividends are paid to common shareholders.

Dividends Paid to Investors Who Purchase Preferred Stock Are Paid