Preferred stock is the equity claim senior to common stock and providing preference on dividends but not liquidation proceeds.

Name: Preferred stock is the equity claim senior to common stock and providing preference on dividends but not liquidation proceeds.
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Question

Quizplus · Accepted Answer

Preferred stock is senior to common stock in both dividends and liquidation proceeds, meaning preferred shareholders have priority over common shareholders for dividend payments and assets in the event of liquidation.

Preferred Stock Is the Equity Claim Senior to Common Stock