Multiple Choice
Many stockholders choose to invest in preferred stock because
A) preferred stock can always be converted into common stock at the stockholder's option.
B) the preferred dividend distributions are generally increased each year.
C) dividends are distributed to preferred stockholders before common stockholders.
D) preferred stock includes the right to participate in management decisions through voting privileges.
Correct Answer:

Answered by ExamLex AI
Correct Answer:
Answered by ExamLex AI
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