The "preferred" feature of preferred stock means that it normally will generate a higher total return for the stockholder than common stock.

Name: The "preferred" feature of preferred stock means that it normally will generate a higher total return for the stockholder than common stock.
Brand: Quizplus
Rating: 4.9 (47 reviews)

Question

Quizplus · Accepted Answer

The "preferred" feature of preferred stock typically refers to dividend preference and priority over common stock in the event of liquidation, not necessarily a higher total return.

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