"preferred" feature of preferred stock means that it normally will provide a higher expected return than will common stock.

Name: "preferred" feature of preferred stock means that it normally will provide a higher expected return than will common stock.
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Question

Quizplus · Accepted Answer

The "preferred" feature of preferred stock refers to its priority over common stock in dividend payments and asset liquidation, not necessarily a higher expected return.

"Preferred" Feature of Preferred Stock Means That It Normally Will