The Figure Given Below Shows the Demand Curves [D₁ and D₂]

The figure given below shows the demand curves [D₁ and D₂] and the supply curve [S₁] of capital.Figure 17.1

-What is the main difference between common and preferred stocks?

A) Common stocks pay interest whereas preferred stocks pay dividends.
B) Preferred stocks carry voting rights whereas common stocks do not carry voting rights.
C) Preferred stocks pay a guaranteed dividend, while common stocks may or may not pay dividends.
D) In case of bankruptcy, preferred stockholders have a right to the company's asset, whereas common stockholders do not have such rights.
E) Common stocks can be converted into preferred stocks while preferred stocks cannot be converted into common stocks.

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