The Term "Preferred" in Preferred Stock Refers to Which of the Following

The term "preferred" in preferred stock refers to which of the following?

A) Preferred stock has a claim on the firm's assets prior to suppliers.
B) Preferred stock has a claim on the firm's assets prior to debt bonds) .
C) Preferred stock has a claim on the firm's assets prior to common stock.
D) Preferred stock has a claim on the firm's assets prior to employees.

Correct Answer:

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