Preferred stock dividends:___________

A. have preference over bond interest payments.
B. have priority over common stock dividends.
C. are guaranteed to be paid at least annually.
D. are excluded from the taxable income of their recipients.

Preferred stockholder are given more priority than common stockholder, when it comes to dividend distribution, however, less than bond holder. Even in case of liquidation of companies, preferred stock holder have right to receive their dividend in arrears. The preferred stockholder have no or very limited voting right in the company. Some preferred stock are convertible also, as it can exchanged for given number of common share. Failing to pay dividend to preferred stockholder does not mean company is at default, as preferred stockholder does not enjoy guarantee by company.

Preferred stock dividends:___________ A. have preference over bond interest payments. B. have priority over common stock dividends. C. are guaranteed to be paid at least annually. D. are excluded from the taxable income of their recipients.

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Preferred stock dividends:___________

A. have preference over bond interest payments.
B. have priority over common stock dividends.
C. are guaranteed to be paid at least annually.
D. are excluded from the taxable income of their recipients.