Which of the following types of stock has less investment risk?
A) common stock
B) par value stock
C) no-par stock
D) preferred stock

Question

Quizplus · Accepted Answer

Preferred stock typically has less investment risk than common stock because it usually comes with a fixed dividend payment and a higher priority for receiving assets in the event of bankruptcy or liquidation. Par value and no-par stock do not necessarily indicate lower investment risk.

Which of the Following Types of Stock Has Less Investment