Preferred stock is stock ________.
A) that sells for a high price
B) that is distributed to employees as annual bonuses
C) that is distributed by corporations to avoid liquidation
D) that gives its owners certain advantages over common stockholders

Question

Quizplus · Accepted Answer

Preferred stock is a type of stock that gives its owners certain advantages over common stockholders, such as priority in dividend payments and voting rights. It may or may not sell for a high price, but it is not typically given as annual bonuses or distributed by corporations to avoid liquidation.

Preferred Stock Is Stock ________