Mike Lively is thinking about buying an investment that represents an ownership claim on a company.The most important priority he has with this investment is receiving his dividends before dividends are paid on other types of investments.What investment is Mike thinking about purchasing?
A)common stock
B)preferred stock
C)corporate bond
D)option
E)mutual fund

Question

Quizplus · Accepted Answer

Preferred stock typically carries a higher priority for dividend payments than common stock. Therefore, if Mike's top priority is to receive dividends before other types of investments, he should consider purchasing preferred stock.

Mike Lively Is Thinking About Buying an Investment That Represents