Which of the following is not a characteristic that sets preferred stock apart from common stock? A. voting rights B. dividend payments C. transferability D. ownership

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Answer 1

Textbook Question

Chapter 14, Problem 1MC

Which of the following is not a characteristic that sets preferred stock apart from common stock?

A. voting rights

B. dividend payments

C. transferability

D. ownership

Expert Solution & Answer

To determine

Introduction: The company issues securities to raise the capital required in the organization. The two types of stocks are the preferred stock and the common stock.

To choose:The correct option.

Answer to Problem 1MC

The correct option is D.

Explanation of Solution

Explanation for the correct answer: The common stock and the preferred stock has a similarity of ownership. With the issuance of the stock, both the common stockholders and the preferred stockholders gets a right in the ownership of the company. Therefore, ownership is the characteristic that does not sets the preferred stock apart from the common stock. Hence, it is the correct answer.

Explanation for the incorrect answers:

A. Voting rights: The common stockholders of a company have the right to vote in the meetings of the company. The preferred stockholders do not have a right to vote in the meetings of the company. The voting right is a characteristic that sets apart the preferred stock from the common stock. Therefore, it is an incorrect answer.

B. Dividend payments: The preferred stockholders get a fixed rate of dividend on their shareholding in the company. The dividends on the common stock are not fixed. The dividend payment is a characteristic that sets apart the preferred stock from the common stock. Therefore, it is an incorrect answer.

C. Transferability:The common stockholders can transfer their shares to other shareholders, but preferred stockholders cannot do that. The transferability is a characteristic that sets apart the preferred stock from the common stock. Therefore, it is an incorrect answer.

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Answer 2

Textbook Question

Chapter 14, Problem 1MC

Which of the following is not a characteristic that sets preferred stock apart from common stock?

A. voting rights

B. dividend payments

C. transferability

D. ownership

Expert Solution & Answer

To determine

Introduction: The company issues securities to raise the capital required in the organization. The two types of stocks are the preferred stock and the common stock.

To choose:The correct option.

Answer to Problem 1MC

The correct option is D.

Explanation of Solution

Explanation for the correct answer: The common stock and the preferred stock has a similarity of ownership. With the issuance of the stock, both the common stockholders and the preferred stockholders gets a right in the ownership of the company. Therefore, ownership is the characteristic that does not sets the preferred stock apart from the common stock. Hence, it is the correct answer.

Explanation for the incorrect answers:

A. Voting rights: The common stockholders of a company have the right to vote in the meetings of the company. The preferred stockholders do not have a right to vote in the meetings of the company. The voting right is a characteristic that sets apart the preferred stock from the common stock. Therefore, it is an incorrect answer.

B. Dividend payments: The preferred stockholders get a fixed rate of dividend on their shareholding in the company. The dividends on the common stock are not fixed. The dividend payment is a characteristic that sets apart the preferred stock from the common stock. Therefore, it is an incorrect answer.

C. Transferability:The common stockholders can transfer their shares to other shareholders, but preferred stockholders cannot do that. The transferability is a characteristic that sets apart the preferred stock from the common stock. Therefore, it is an incorrect answer.

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Answer 3

Textbook Question

Chapter 14, Problem 1MC

Which of the following is not a characteristic that sets preferred stock apart from common stock?

A. voting rights

B. dividend payments

C. transferability

D. ownership

Expert Solution & Answer

To determine

Introduction: The company issues securities to raise the capital required in the organization. The two types of stocks are the preferred stock and the common stock.

To choose:The correct option.

Answer to Problem 1MC

The correct option is D.

Explanation of Solution

Explanation for the correct answer: The common stock and the preferred stock has a similarity of ownership. With the issuance of the stock, both the common stockholders and the preferred stockholders gets a right in the ownership of the company. Therefore, ownership is the characteristic that does not sets the preferred stock apart from the common stock. Hence, it is the correct answer.

Explanation for the incorrect answers:

A. Voting rights: The common stockholders of a company have the right to vote in the meetings of the company. The preferred stockholders do not have a right to vote in the meetings of the company. The voting right is a characteristic that sets apart the preferred stock from the common stock. Therefore, it is an incorrect answer.

B. Dividend payments: The preferred stockholders get a fixed rate of dividend on their shareholding in the company. The dividends on the common stock are not fixed. The dividend payment is a characteristic that sets apart the preferred stock from the common stock. Therefore, it is an incorrect answer.

C. Transferability:The common stockholders can transfer their shares to other shareholders, but preferred stockholders cannot do that. The transferability is a characteristic that sets apart the preferred stock from the common stock. Therefore, it is an incorrect answer.

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Answer 4

Textbook Question

Chapter 14, Problem 1MC

Which of the following is not a characteristic that sets preferred stock apart from common stock?

A. voting rights

B. dividend payments

C. transferability

D. ownership

Expert Solution & Answer

To determine

Introduction: The company issues securities to raise the capital required in the organization. The two types of stocks are the preferred stock and the common stock.

To choose:The correct option.

Answer to Problem 1MC

The correct option is D.

Explanation of Solution

Explanation for the correct answer: The common stock and the preferred stock has a similarity of ownership. With the issuance of the stock, both the common stockholders and the preferred stockholders gets a right in the ownership of the company. Therefore, ownership is the characteristic that does not sets the preferred stock apart from the common stock. Hence, it is the correct answer.

Explanation for the incorrect answers:

A. Voting rights: The common stockholders of a company have the right to vote in the meetings of the company. The preferred stockholders do not have a right to vote in the meetings of the company. The voting right is a characteristic that sets apart the preferred stock from the common stock. Therefore, it is an incorrect answer.

B. Dividend payments: The preferred stockholders get a fixed rate of dividend on their shareholding in the company. The dividends on the common stock are not fixed. The dividend payment is a characteristic that sets apart the preferred stock from the common stock. Therefore, it is an incorrect answer.

C. Transferability:The common stockholders can transfer their shares to other shareholders, but preferred stockholders cannot do that. The transferability is a characteristic that sets apart the preferred stock from the common stock. Therefore, it is an incorrect answer.

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Answer 5

Textbook Question

Answer 6

Textbook Question

Answer 7

Expert Solution & Answer

To determine

Introduction: The company issues securities to raise the capital required in the organization. The two types of stocks are the preferred stock and the common stock.

To choose:The correct option.

Answer to Problem 1MC

The correct option is D.

Explanation of Solution

Explanation for the correct answer: The common stock and the preferred stock has a similarity of ownership. With the issuance of the stock, both the common stockholders and the preferred stockholders gets a right in the ownership of the company. Therefore, ownership is the characteristic that does not sets the preferred stock apart from the common stock. Hence, it is the correct answer.

Explanation for the incorrect answers:

A. Voting rights: The common stockholders of a company have the right to vote in the meetings of the company. The preferred stockholders do not have a right to vote in the meetings of the company. The voting right is a characteristic that sets apart the preferred stock from the common stock. Therefore, it is an incorrect answer.

B. Dividend payments: The preferred stockholders get a fixed rate of dividend on their shareholding in the company. The dividends on the common stock are not fixed. The dividend payment is a characteristic that sets apart the preferred stock from the common stock. Therefore, it is an incorrect answer.

C. Transferability:The common stockholders can transfer their shares to other shareholders, but preferred stockholders cannot do that. The transferability is a characteristic that sets apart the preferred stock from the common stock. Therefore, it is an incorrect answer.

Answer 8

Expert Solution & Answer

To determine

Introduction: The company issues securities to raise the capital required in the organization. The two types of stocks are the preferred stock and the common stock.

To choose:The correct option.

Answer to Problem 1MC

The correct option is D.

Explanation of Solution

Explanation for the correct answer: The common stock and the preferred stock has a similarity of ownership. With the issuance of the stock, both the common stockholders and the preferred stockholders gets a right in the ownership of the company. Therefore, ownership is the characteristic that does not sets the preferred stock apart from the common stock. Hence, it is the correct answer.

Explanation for the incorrect answers:

A. Voting rights: The common stockholders of a company have the right to vote in the meetings of the company. The preferred stockholders do not have a right to vote in the meetings of the company. The voting right is a characteristic that sets apart the preferred stock from the common stock. Therefore, it is an incorrect answer.

B. Dividend payments: The preferred stockholders get a fixed rate of dividend on their shareholding in the company. The dividends on the common stock are not fixed. The dividend payment is a characteristic that sets apart the preferred stock from the common stock. Therefore, it is an incorrect answer.

C. Transferability:The common stockholders can transfer their shares to other shareholders, but preferred stockholders cannot do that. The transferability is a characteristic that sets apart the preferred stock from the common stock. Therefore, it is an incorrect answer.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

To determine

Introduction: The company issues securities to raise the capital required in the organization. The two types of stocks are the preferred stock and the common stock.

To choose:The correct option.

Answer 12

Answer to Problem 1MC

The correct option is D.

Answer 13

Explanation of Solution

Explanation for the correct answer: The common stock and the preferred stock has a similarity of ownership. With the issuance of the stock, both the common stockholders and the preferred stockholders gets a right in the ownership of the company. Therefore, ownership is the characteristic that does not sets the preferred stock apart from the common stock. Hence, it is the correct answer.

Explanation for the incorrect answers:

A. Voting rights: The common stockholders of a company have the right to vote in the meetings of the company. The preferred stockholders do not have a right to vote in the meetings of the company. The voting right is a characteristic that sets apart the preferred stock from the common stock. Therefore, it is an incorrect answer.

B. Dividend payments: The preferred stockholders get a fixed rate of dividend on their shareholding in the company. The dividends on the common stock are not fixed. The dividend payment is a characteristic that sets apart the preferred stock from the common stock. Therefore, it is an incorrect answer.

C. Transferability:The common stockholders can transfer their shares to other shareholders, but preferred stockholders cannot do that. The transferability is a characteristic that sets apart the preferred stock from the common stock. Therefore, it is an incorrect answer.

Answer 14

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Which of the following is not a characteristic that sets preferred stock apart from common stock? A. voting rights B. dividend payments C. transferability D. ownership

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Answer to Problem 1MC

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