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Which of the Following Is an Advantage of Preferred Stock

Question 144

Multiple Choice

Which of the following is an advantage of preferred stock?


A) In the event of liquidation, preferred shareholders are guaranteed to get their investment back in full.
B) In the event of liquidation, preferred shareholders have first claim on remaining corporate assets.
C) In the event of liquidation, preferred shareholders may sell their shares for higher amounts than common stock.
D) In the event of liquidation, preferred shareholders may retain their proportionate share of voting rights.

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