Which of the following is true of preferred stock?

Question

Quizplus · Accepted Answer

Preferred shareholders generally receive a fixed amount of dividends before common stockholders do. This is why they are called "preferred" - they have priority over common shareholders when it comes to dividends. They do not, however, have guaranteed profits or higher voting rights than common shareholders. Additionally, the market price of preferred stock can be higher or lower than that of common stock, depending on various factors.

Which of the Following Is True of Preferred Stock