What is the main difference between common and preferred stocks?
a. Common stocks pay interest whereas preferred stocks pay dividends.
b. Preferred stocks carry voting rights whereas common stocks do not carry voting rights.
c. Preferred stocks pay a guaranteed dividend, while common stocks may or may not pay dividends.
d. In case of bankruptcy, preferred stockholders have a right to the company's asset, whereas common stockholders do not have such rights.
e. Common stocks can be converted into preferred stocks while preferred stocks cannot be converted into common stocks.
c
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A good example of a price floor is
a. rent controls on rental apartments in major cities b. the cheapest tickets to concerts c. the minimum wage law d. food stamps provided to low-income people who use them to purchase specific basic foods at retail stores, such as corner groceries and supermarkets e. discount airfares
When the government budget deficit rises, national saving is reduced, interest rates rise, and investment falls
a. True b. False Indicate whether the statement is true or false