Asked by Linda Rydberg on May 05, 2024
Verified
Which form of stock owner would receive dividend payments first?
A) Convertible securities
B) Common stock
C) Preferred stock
D) Standard stock
Preferred Stock
Shares that give owners limited voting rights, and the right to receive dividends or assets before owners of common stock.
Convertible Securities
Bonds or preferred stock issues that are convertible into a set number of shares of the issuing company’s common stock.
- Distinguish between diverse categories of securities and their distinct features.
Verified Answer
AK
Amanda KarunaratneMay 09, 2024
Final Answer :
C
Explanation :
Preferred stockholders have a higher claim on dividends than common stockholders, meaning they receive dividends before common stockholders do.
Learning Objectives
- Distinguish between diverse categories of securities and their distinct features.
Related questions
If an Individual Owns 10% of the Assets in a ...
Which of These Are Units of Ownership Held by Shareholders ...
_______,Also Called Financial Instruments,represent Obligations on the Part of the ...
All of the Following Are Types of Securities EXCEPT ...
What Feature Gives the Bondholder or Preferred Stockholder the Right ...