Question

All of the following statements are true about preferred stock EXCEPT:

Answer 1

Answer:

The answer is: B) In most cases dividends are paid semi-annually

Explanation:

Preferred dividends:

• are paid before common dividends,
• usually yield higher rates,
• and are paid in shorter terms.                

In most cases they are paid on a monthly or quarterly basis. Semi-annual payments occur once every 6 months (or twice a year) and for preferred dividends that is usually considered a long time.