Preferred stockholders may receive a preference as to dividends, assets or both.

Name: Preferred stockholders may receive a preference as to dividends, assets or both.
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Question

Quizplus · Accepted Answer

Preferred stockholders often have a preference over common stockholders when it comes to receiving dividends and may also have priority in the distribution of assets in the event of a company liquidation, giving them rights to both dividends and assets before common stockholders.

Preferred Stockholders May Receive a Preference as to Dividends, Assets