Which of the following is a difference between preferred stock and common stock?
A) Unlike common stockholders, preferred stockholders have a guaranteed legal right to receive a dividend.
B) Unlike common stockholders, preferred stockholders are not paid their dividends in full.
C) Unlike common stock, preferred stock is normally issued with a stated dividend.
D) Unlike common stock, preferred stock dividends are paid in irregular time intervals.

Question

Quizplus · Accepted Answer

Preferred stock is typically issued with a stated dividend, which is a fixed amount or percentage, unlike common stock which does not have a guaranteed dividend.

Which of the Following Is a Difference Between Preferred Stock