Which of the following is an advantage of preferred stock? In the event of liqui

ID: 2338730 • Letter: W

Question

Which of the following is an advantage of preferred stock?

In the event of liquidation, preferred shareholders are guaranteed to get their investment back in full.

In the event of liquidation, preferred shareholders have first claim on remaining corporate assets.

In the event of liquidation, preferred shareholders may sell their shares for higher amounts than common stock.

In the event of liquidation, preferred shareholders may retain their proportionate share of voting rights.

In the event of liquidation, preferred shareholders are guaranteed to get their investment back in full.

In the event of liquidation, preferred shareholders have first claim on remaining corporate assets.

In the event of liquidation, preferred shareholders may sell their shares for higher amounts than common stock.

In the event of liquidation, preferred shareholders may retain their proportionate share of voting rights.

Which of the following is an advantage of preferred stock?

Preferred shareholder have received assets on liquidation before common Stock

So answer is b) In the event of liquidation, preferred shareholders have first claim on remaining corporate assets.

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