SIE: Exercise

Exercise

Circle the correct choice

1. 1. Common stock is [riskier/less risky] and has [more growth potential/less growth potential], while preferred stock is [more risky/less risky] with [more growth potential/less growth potential].
2. 2. Common stock allows [one vote/no votes] per share.
3. 3. Preferred stock allows [one vote/no votes] per share.
4. 4. [Common stockholders/preferred stockholders] are last in line during liquidation, while [common stockholders/preferred stockholders] have a higher claim on assets.
5. 5. [Preferred stockholders/common stockholders] are the first to receive dividend