[amp_mcq option1=”common stock” option2=”preferred stock” option3=”bonds equity” option4=”common shares” correct=”option2″]<\/p>\n
The correct answer is: B. preferred stock<\/strong><\/p>\n Preferred stock is a type of equity security that has a higher claim on a company’s assets and earnings than common stock. Preferred stockholders are entitled to a fixed dividend, which is paid out before any dividends are paid to common stockholders. In the event of a company’s bankruptcy, preferred stockholders are paid out before common stockholders.<\/p>\n Common stock is a type of equity security that represents ownership in a company. Common stockholders have the right to vote on company matters and to receive dividends, if any are declared. However, common stockholders have a lower claim on a company’s assets and earnings than preferred stockholders.<\/p>\n Bonds are a type of debt security that represents a loan made by an investor to a company or government. Bondholders are entitled to receive interest payments on a regular basis, and the principal amount of the bond is repaid at maturity.<\/p>\n Equity is the value of a company that is owned by its shareholders. Equity is calculated by subtracting a company’s liabilities from its assets.<\/p>\n Common shares are shares of common stock.<\/p>\n","protected":false},"excerpt":{"rendered":" [amp_mcq option1=”common stock” option2=”preferred stock” option3=”bonds equity” option4=”common shares” correct=”option2″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[945],"tags":[],"class_list":["post-44514","post","type-post","status-publish","format-standard","hentry","category-financial-management","no-featured-image-padding"],"yoast_head":"\n