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What's So "Preferred" About Preferred Stocks

Question 155

Essay

What's so "preferred" about preferred stocks?
Most preferred stocks do not have voting power, a basic right of common stock. Identify at least two features of most preferred stocks that justify or support use of the term preferred in describing these types of stock issues.
Student's answer should include two of the following features of most preferred stocks that justify the term preferred:

Correct Answer:

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(a) Preferred as to dividends Preferred ...

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