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Equity that offers preferential claims in ownership is:
APreferred stock
BPreserved stock
CPresented stock
DPrevented stock
Answer & Solution
Correct answer: A. Preferred stock
1. A dividend is usually obligatory on it.
2. Its claim ranks ahead of ordinary shares.
3. It is preferred stock.
_Source: OpenStax Principles of Finance 2e, Chapter 11, Stocks and Stock Valuation._
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