Question

(Ch. 10)
Investors who acquire preferred stock:

Answer 1

Investors who acquire preferred stock are individuals or entities that purchase a specific type of stock known as preferred stock.

Step-by-step explanation:

Investors who acquire preferred stock are individuals or entities that purchase a specific type of stock known as preferred stock. Preferred stock represents ownership in a company and typically carries certain rights and privileges that are different from common stock. These rights may include priority in receiving dividends and in the distribution of assets if the company is liquidated. However, preferred stockholders do not usually have voting rights in the company's decisions.