Which of the following is true of preferred stock? Preferred stockholders are guaranteed that they will...

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Which of the following is true of preferred stock? Preferred stockholders are guaranteed that they will...

Which of the following is true of preferred stock?

		Preferred stockholders are guaranteed that they will not take a loss on their investment.
		Preferred stockholders may sell their shares for a price higher than that of common stock.
		Preferred stockholders have higher voting rights than common stockholders.
		Preferred stockholders generally receive a fixed amount of dividends before common stockholders do.

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Answer 1

Answer #1

Option D is the answer
Preferred shareholders can either be cumulative or non cumulative. However they receive dividends prior to the distribution to the common shareholders

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Answer 2

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