Question

Which best describes the difference between preferred and common stocks?

B. Common stock gives shareholders one vote per share owned, while shareholders of preferred stock do not have voting rights.
D. Common stock allows shareholders to get priority for dividends distributed, while shareholders of preferred stock are not allowed dividends.

Answer 1

I believe the answer is: B. Common stock gives shareholders one vote per share owned, while shareholders of preferred stock do not have voting rights.

But, despite not obtaining a vote per share owned, preferred stocks indeed still have a positive advantage over common stock. Every time the company announce its dividend, the company has to fulfill its obligation to the preferred stock holders first before fulfilling its obligation to the common stock holders.

Answer 2

Answer:

The Correct Answer Is B

Explanation:

I got it right of Edge2020