Preferred stock is called preferred because it usually has two preferences.These preferences relate to:
A)Dividends and voting rights.
B)Par value and dividends.
C)The preemptive right and voting rights.
D)Assets at liquidation and dividends.

Question

Quizplus · Accepted Answer

Preferred stock is called "preferred" because it typically has a preference over common stock in two areas: dividends and assets at liquidation. Preferred shareholders usually receive dividends before common shareholders and have a higher claim on assets if the company is liquidated.

Preferred Stock Is Called Preferred Because It Usually Has Two