The Most Important Distinction Between Preferred Stock and Common Stock

Multiple Choice

The most important distinction between preferred stock and common stock is that:

A) owners of common stock are more likely to receive a dividend than owners of preferred stock.
B) owners of preferred stock are more likely to receive a dividend than owners of common stock.
C) while preferred stockholders are owners of a corporation, common stockholders are its creditors.
D) while common stockholders are owners of a corporation, preferred stockholders are its creditors.