Investment VehiclesPregunta 77 de 100
Preferred stock differs from common stock primarily because it:
a.Generally pays a fixed dividend and has priority over common in dividends and liquidation
b.Always carries greater voting power
c.Has unlimited upside like a growth stock
d.Is a debt instrument with a maturity date
Explicación
Preferred stock typically pays a fixed dividend and ranks ahead of common stock for dividends and in liquidation, though usually without voting rights. It behaves partly like a fixed-income security due to its fixed payment. Its price is sensitive to interest rates.
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