Question

Larry will receive dividends together with preferred stockholders.
True/False.

Answer 1

TRUE. Preferred stockholders receive dividends along with common stockholders.

Step-by-step explanation:

Common stockholders, also known as common shareholders or equity shareholders, are individuals or entities who hold common stock in a corporation. Common stock represents ownership in a company and provides shareholders with certain rights and privileges, although they are typically subordinate to those of preferred stockholders. When a company issues dividends, preferred stockholders are entitled to receive dividends along with common stockholders. However, the amount of dividends received by preferred stockholders is typically fixed and specified in the terms of the preferred stock. If there are any remaining profits, they are distributed to the common stockholders.