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What Is the Difference Between Common and Preferred Stocks

Question 7

Multiple Choice

What is the difference between common and preferred stocks?


A) Unlike holders of common stock, those who own preferred stock usually do not get voting rights at the annual corporate meeting.
B) Those who hold common stocks are paid dividends before those who hold preferred stocks are paid.
C) Unlike preferred stock, the amount of the dividend paid to those who own common stock is fixed and never changes.
D) Unlike preferred stock, common stock is the least popular form of stock.

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