Which of the following is an advantage of preferred stock?

Question

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Preferred shareholders have the first claim on dividend funds, which means they receive their dividends before common shareholders. This is an advantage over common shareholders who may not receive any dividends at all if the company experiences financial difficulties. A is incorrect because preferred shareholders are not guaranteed to not take a loss on their investment. B is incorrect because preferred shareholders generally have limited or no voting rights. C is incorrect because the market price of preferred stock can go up or down, just like common stock.

Which of the Following Is an Advantage of Preferred Stock