Multiple Choice QuestionOwners of ______ stock are given preference in the payment of company dividends.Multiple choice question.primarypreferredcommonpar

Breakdown the Problem

1. Identify the type of stock referenced in the question.
2. Determine the characteristics of each type of stock in the context of dividends.

Relevant Concepts

1. Common Stock: Represents ownership in a company but does not guarantee dividends.
2. Preferred Stock: Provides a fixed dividend before any dividends are paid to common stockholders.

Analysis and Detail

1. Owners of common stock typically receive dividends after preferred stockholders.
2. Preferred stockholders have a preferential claim on dividends, meaning they are paid first before common stockholders receive any dividends.

Verify and Summarize

• Given the definitions, it is clear that the answer furthers the notion of dividend preference in relation to the type of stock owned.

Final Answer

preferred