Question

When investors purchase ________ stock, they receive a priority claim in the payment of dividends, as well as assets, if the business is liquidated. however, these investors do not have voting rights?

Answer 1

That would be preferred stock. It's appealing to stockholders even if it doesn't have voting rights usually because the preferred stockholders get "first dibs" on dividends. Only when the preferred stockholders are paid do the rest of the dividends go to the common stockholders. 

Answer 2

Answer:

The correct answer is "preferred".

Explanation:

Preferred stock is characterized by the fact that investors do not usually have voting rights. However, they may have priority over common shares in the payment of dividends and the liquidation of the company. It is a security or share issued by a company, bank, savings bank or financial company that does not confer any share in its capital or voting rights at the shareholders' meeting.

Have a nice day!