An owner of which form of stock would receive dividend payments first?
A)convertible securities
B)common stock
C)preferred stock
D)standard stock

Question

Quizplus · Accepted Answer

Preferred stockholders have priority over common stockholders in receiving dividend payments. This is because preferred stock is considered a hybrid security that has characteristics of both stocks and bonds, and is typically issued with a stated dividend rate that must be paid before any dividends can be paid to common stockholders. Convertible securities are typically debt securities that can be converted into common stock, and standard stock is not a specific type of security.

An Owner of Which Form of Stock Would Receive Dividend