Which of the following statements is true?
A) Preferred stockholders are entitled to dividends before common stockholders can receive dividends.
B) Preferred stock, like common stock, usually has no maturity; i.e., the corporation does not pay back the investment.
C) The market value of preferred stock, like bonds, will usually fluctuate in value primarily as the result of market rates of interest.
D) All of the above.

Question

Quizplus · Accepted Answer

All the statements provided are true regarding preferred stock. A) Preferred stockholders indeed have priority over common stockholders for dividend payments. B) Preferred stock typically does not have a maturity date, similar to common stock, meaning the investment is not repaid by the corporation at a specific time. C) The market value of preferred stock fluctuates similarly to bonds, primarily due to changes in market interest rates.

Which of the Following Statements Is True