Asked by Linda Rydberg on May 05, 2024

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Verified

Which form of stock owner would receive dividend payments first?

A) Convertible securities
B) Common stock
C) Preferred stock
D) Standard stock

Preferred Stock

Shares that give owners limited voting rights, and the right to receive dividends or assets before owners of common stock.

Convertible Securities

Bonds or preferred stock issues that are convertible into a set number of shares of the issuing company’s common stock.

  • Distinguish between diverse categories of securities and their distinct features.
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Verified Answer

AK
Amanda KarunaratneMay 09, 2024
Final Answer :
C
Explanation :
Preferred stockholders have a higher claim on dividends than common stockholders, meaning they receive dividends before common stockholders do.