When a company has issued both preferred and common stock, the common stockholders are allocated their dividends first.

Name: When a company has issued both preferred and common stock, the common stockholders are allocated their dividends first.
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Question

Quizplus · Accepted Answer

Preferred stockholders typically have priority over common stockholders when it comes to receiving dividends. They are typically paid their fixed dividend amount before any dividends are paid to common stockholders.

When a Company Has Issued Both Preferred and Common Stock