The type of stock that entitles the owner to stated dividend payments that must be made before any dividends are paid to other classes of shareholders would best be described as:
A) common stock.
B) preferred stock.
C) corporate bonds.
D) municipal bonds.

Question

Quizplus · Accepted Answer

Preferred stock typically provides dividends that are paid out to shareholders before any dividends are distributed to common stockholders. This feature makes preferred stock distinct in its dividend payment priority over common stock.

The Type of Stock That Entitles the Owner to Stated