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What is the significance of the term preferred in reference to preferred stock? It is viewed to generally be a better investment than common stock.
What is the significance of the term "preferred" in reference to preferred stock?
It is viewed to generally be a better investment than common stock.
Preferred stockholders usually have better voting rights than common stockholders.
Preferred stockholders receive preference over creditors of the corporation in the event of liquidation.
Preferred stockholders receive certain preferences over common stockholders with respect to dividends or with respect to assets in the event of liquidation.
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