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A Difference Between Preferred Stock and Common Stock Is Preferred

Question 2

Multiple Choice

A difference between preferred stock and common stock is preferred shareholders ________.


A) have voting rights,while common shareholders do not
B) have the right to share in any assets left if the company goes out of business after both the creditors and common shareholders receive their share
C) have the right to buy new shares in order to maintain their percentage ownership before the company can issue new shares to the general public
D) must receive their dividends before any of the common shareholders are paid

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