Lindsey Holt owns stock in the Galloway Gems Company. She knows she will receive a $1.50 dividend each quarter. Given this, you know for sure that she purchased which type of stock?

Question

Quizplus · Accepted Answer

Preferred stock is known for paying consistent dividends, which are usually a fixed amount. Common stock, on the other hand, may or may not pay dividends, and the amount may vary. Blue chip, growth, and penny stocks are not necessarily associated with paying dividends. Therefore, the fact that Lindsey Holt knows she will receive a $1.50 dividend each quarter indicates that she owns preferred stock.

Lindsey Holt Owns Stock in the Galloway Gems Company