Which of the following statements is correct?
A)Investors favor purchasing preferred shares.
B)All outstanding shares are eligible to vote for the board of directors.
C)The value of preferred shares can be higher or lower than that of common shares.
D)Common shares always have voting rights.

Question

Quizplus · Accepted Answer

The value of preferred shares can indeed be higher or lower than that of common shares, depending on various factors such as the overall health of the issuing company, market conditions, and the specific rights and privileges attached to the shares. Preferred shares have a fixed dividend, which can make them more or less valuable compared to common shares depending on interest rates and the company's performance.

Which of the Following Statements Is Correct