Question

Preferred stock gives its owners certain advantages over common stockholders.

a. true
b. false

Answer 1

Preferred stock gives its owners certain advantages over common stockholders. This statement is true.

Step-by-step explanation:

Preferred stock gives its owners certain advantages over common stockholders. This statement is true. Preferred stockholders typically have a higher claim on a company's assets and earnings compared to common stockholders. They have priority when it comes to receiving dividends and in the event of bankruptcy, preferred stockholders have a greater chance of receiving their investment back.