Which right do preferred stockholders receive before common stockholders?

Question

Quizplus · Accepted Answer

Preferred stockholders have priority over common stockholders when it comes to receiving dividends. They are typically entitled to a fixed dividend rate, whereas common stockholders only receive dividends if the company has sufficient profits after paying out preferred dividends.

Answer: D 
 Preemptive rights give preferred stockholders the option to purchase additional shares of the stock before they are offered to common stockholders. This allows preferred shareholders to maintain their proportional ownership in the company and helps prevent dilution of their ownership stake. Common stockholders do not have preemptive rights.

Which Right Do Preferred Stockholders Receive Before Common Stockholders