Preferred stockholders:
A) receive dividends after common stockholders.
B) receive corporate assets upon liquidation after the common stockholders.
C) do not have any stockholder rights.
D) receive a fixed dividend when the board of directors declares the dividend.

Question

Quizplus · Accepted Answer

Preferred stockholders receive a fixed dividend when the board of directors declares the dividend. They may receive dividends before common stockholders, but after any outstanding debt obligations are met. In case of liquidation, they typically have higher priority than common stockholders, but lower than creditors and bondholders.

Preferred Stockholders