Which of the following is not true regarding preferred stock?
A)It gets rights to the assets of a corporation before common stock
B)It has a stated dividend rate
C)It has the potential for greater capital appreciation than common stock
D)It is a safer and more conservative investment than common stock

Question

Quizplus · Accepted Answer

Preferred stock typically does not have the potential for greater capital appreciation than common stock, as it is structured to prioritize consistent dividend payments over price appreciation.

Which of the Following Is Not True Regarding Preferred Stock