Question
Preferred stock has preference over common stock in the Blank______.
Multiple select question.
distribution of corporate assets
number of votes given
portfolios of individual investors
payment of dividends
Multiple select question.
distribution of corporate assets
number of votes given
portfolios of individual investors
payment of dividends
Answers
GPT-4o mini
Preferred stock has preference over common stock in the following areas:
1. **Distribution of corporate assets** - Preferred stockholders have a claim on the company's assets before common stockholders in the event of liquidation.
2. **Payment of dividends** - Preferred stockholders generally receive dividends before common stockholders, and in many cases, preferred dividends must be paid out before any dividends can be distributed to common stockholders.
The other options, **number of votes given** and **portfolios of individual investors**, do not apply as preferred stock typically does not carry voting rights like common stock does, and "portfolios of individual investors" is not a preference aspect inherent to the characteristics of preferred stock.
So, the correct answers are:
- Distribution of corporate assets
- Payment of dividends
1. **Distribution of corporate assets** - Preferred stockholders have a claim on the company's assets before common stockholders in the event of liquidation.
2. **Payment of dividends** - Preferred stockholders generally receive dividends before common stockholders, and in many cases, preferred dividends must be paid out before any dividends can be distributed to common stockholders.
The other options, **number of votes given** and **portfolios of individual investors**, do not apply as preferred stock typically does not carry voting rights like common stock does, and "portfolios of individual investors" is not a preference aspect inherent to the characteristics of preferred stock.
So, the correct answers are:
- Distribution of corporate assets
- Payment of dividends