The difference between common and preferred stock is that preferred stock

Question

Quizplus · Accepted Answer

Preferred stock has predictable income and more safety compared to common stock. It typically pays fixed dividends and has priority over common stock when it comes to receiving dividends and assets in the event of liquidation. Common stock, on the other hand, may or may not pay dividends and has a greater potential for capital appreciation. Therefore, option B is the correct answer.

The Difference Between Common and Preferred Stock Is That Preferred