Home › BAF (Bachelor of Accounting & Finance) › Financial Management › Stock Valuation › The word preferred refers to those shareholders …
The word preferred refers to those shareholders receiving dividends before:
ACentral bankers
BCommodity traders
CCommon shareholders
DCorporate lenders
Answer & Solution
Correct answer: C. Common shareholders
1. Past and present dividends are covered.
2. Ordinary holders wait.
3. They come before common shareholders.
_Source: OpenStax Principles of Finance 2e, Chapter 11, Stocks and Stock Valuation._
Related questions
In the weakest of those forms, prices already reflect all:The three forms of market efficiency identified are strong, semi-strong and:Because that dividend stream is constant, preferred stock is well valued using the:The steady dividend on preferred stock makes it seem more like:Many firms issue preferred stock that can later be exchanged for ordinary shares. That is Unlike bonds, preferred stock has no:Equity that offers preferential claims in ownership is:A measurement of the total value of a company, used in merger decisions, is: