Which of the following is not true regarding preferred stock?
A) Preferred stockholders have rights to the assets of the corporation before common stockholders.
B) Preferred stockholders have priority over common stockholders in receiving dividends.
C) Preferred stock has greater potential for capital appreciation than common stock.
D) The price of preferred stock is less volatile than the price of common stock.

Question

Quizplus · Accepted Answer

Preferred stock typically has less potential for capital appreciation compared to common stock. This is because preferred stocks often have fixed dividend rates and do not participate in the company's growth to the same extent as common stocks.

Which of the Following Is Not True Regarding Preferred Stock