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is thinking about buying an investment that represents an ownership claim on a company. the most important priority he has with this investment is receiving his dividends before dividends are paid on other types of investments. what investment is thinking about purchasing?

Sagot :

To receive his dividends before payouts on other sorts of investments are paid is his investment's top priority. Considering investing in preferred stocks.

Because they provide their owners a priority claim whenever a business pays dividends or distributes assets to shareholders, preferred shares get their name. Preferred shareholders usually do not have a vote in corporate elections, and therefore do not give any preference in corporate governance.

The answer is based on your risk appetite and investing objectives, as with other investments. Preferred stock is a good option for investors seeking better returns than bonds and the possibility of bigger dividends than regular shares. Preferred stock is, in essence, safer than regular stock but riskier than bonds.

To learn more about preferred stocks

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