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Duong was trying to decide between purchasing the common stock shares of longman manufacturing, or preferred shares of the same company. As a student of business, you provide the accurate information that.

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As a student of business, you provide the accurate information that: d) preferred shareholders typically do not have voting rights. Companies are obligated to pay preferred shareholders their dividends before paying dividends to common stockholders.

Preferred stockholders are stockholders who has no right to vote when it comes to company assets and their profit is often greater than that of common stockholders.

Common stockholders on the other hand has the right to vote and their profit are often paid after preferred stockholder profit has been paid.

Therefore based on the information given Duong should note that preferred shareholders are often given more preference over common stockholder when it comes to paying out dividends by companies.

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