Which of the following types of stock are considered to be LEAST risky for investors?

Question

Quizplus · Accepted Answer

Preferred stock is considered to be less risky for investors compared to common stock because preferred stockholders have priority over common stockholders to receive dividends and assets in case a company goes bankrupt. Additionally, preferred stock pays a fixed dividend, which provides a regular income stream for investors. Par value and no-par stock do not necessarily affect the level of risk for investors.

Which of the Following Types of Stock Are Considered to Be