Which of the Following Statements Is True

Multiple Choice

Which of the following statements is true?

A) Ordinary shares is a more conservative investment than preferred stock.
B) Dividends on preferred stock are less secure than dividends paid to ordinary shareholders.
C) Preferred stockholders have a priority claim on dividends before ordinary shareholders.
D) As the basic form of ownership, ordinary shareholders receive their dividends before any other class of stock.
E) As the basic form of ownership, ordinary shareholders have a priority claim on a firm's assets if the firm enters bankruptcy.