How is preferred stock similar to common stock? Investors cannot sue a corporati
ID: 2637117 • Letter: H
Question
How is preferred stock similar to common stock?
Investors cannot sue a corporation for the non-payment of dividends.
Preferred dividend payments usually have unlimited growth potential.
Preferred stock dividends and common stock dividends are fixed.
Both preferred and common stockholders have voting control of a firm.
A.Investors cannot sue a corporation for the non-payment of dividends.
B.Preferred dividend payments usually have unlimited growth potential.
C.Preferred stock dividends and common stock dividends are fixed.
D.Both preferred and common stockholders have voting control of a firm.
Explanation / Answer
Investors cannot sue a corporation for the non-payment of dividends.
A.Investors cannot sue a corporation for the non-payment of dividends.