The most important priority that an investor in preferred stock enjoys is receiving cash dividends before common shareholders are paid any cash dividends.

Name: The most important priority that an investor in preferred stock enjoys is receiving cash dividends before common shareholders are paid any cash dividends.
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Question

Quizplus · Accepted Answer

This is true. Preferred stockholders have a higher claim on a company's earnings and are usually entitled to receive fixed dividends before common stockholders receive any dividend payments.

The Most Important Priority That an Investor in Preferred Stock