The main difference(s)between a preferred stock in Company A that pays a $2.50 per share annual dividend and a common stock in Company A that also pays a $2.50 per share current annual dividend is (are)
A) the common stock has potential for price appreciation due to company earning s growth.
B) the common stock dividend may increase but the preferred dividend is fixed in perpetuity.
C) the common stock could lose value if the company performance were to suffer.
D) all of the above are real differences between preferred and common stock in the same company.

Question

Quizplus · Accepted Answer

Preferred stock typically has a fixed dividend and less potential for price appreciation, while common stock dividends can vary and have more potential for price changes based on company performance.

The Main Difference(s)between a Preferred Stock in Company a That