Q311
Stockholders that do not get benefits even if company's earnings grow are classified as
A.
preferred stockholders
AnswerB.
common stockholders
C.
hybrid stockholders
D.
debt holders
Answer: Option A
Solution
Answer: Option A
Solution:
Stockholders that do not get benefits even if company's earnings grow are classified as preferred stockholders. Preferred shareholders have priority over common stockholders when it comes to dividends, which generally yield more than common stock and can be paid monthly or quarterly.