Asked by Jason Yechan on May 16, 2024
Verified
Preferred stock often has a preference over common stock in the distribution of assets in the event of dissolution of the corporation.
Preferred Stock
A class of ownership in a corporation that has a higher claim on assets and earnings than common stock, usually paying fixed dividends.
Common Stock
Equity security representing ownership interest in a corporation, with holders entitled to vote at company meetings and receive dividends.
Distribution
The process of delivering products or services from the production or service delivery point to the end consumer.
- Understand the privileges and traits of ordinary and preferred shareholders.
Verified Answer
JK
Jennifer KhalilMay 21, 2024
Final Answer :
True
Explanation :
Preferred stockholders typically have a preference over common stockholders in the distribution of assets during liquidation or dissolution of the corporation.
Learning Objectives
- Understand the privileges and traits of ordinary and preferred shareholders.