Deal of The Day! Hurry Up, Grab the Special Discount - Save 25% - Ends In 00:00:00 Coupon code: SAVE25
Welcome to Pass4Success

- Free Preparation Discussions
Mail Us support@pass4success.com
Location US
Mob_nav_barsMENU

IIA Exam IIA-ACCA Topic 1 Question 55 Discussion

Actual exam question for IIA's IIA-ACCA exam
Question #: 55
Topic #: 1
[All IIA-ACCA Questions]

Preferred stock is less risky for investors than is common stock because:

Show Suggested Answer Hide Answer
Suggested Answer: C

by Arlette at Feb 27, 2023, 12:22 PM

Limited Time Offer

25%

Off

Get Premium IIA-ACCA Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel
Tran
2 months ago
Wait, is this a finance exam or a philosophical debate on the nature of risk? I kid, I kid. Gotta go with C, the cumulative dividends make perfect sense.
upvoted 0 times
Myra
29 days ago
Common stock definitely has priority over preferred stock when it comes to earnings and assets.
upvoted 0 times
...
Lonna
30 days ago
I think preferred stock is less risky because of the higher dividend yield.
upvoted 0 times
...
Kyoko
1 months ago
I agree, cumulative dividends provide a safety net for investors.
upvoted 0 times
...
...
Vi
2 months ago
Preferred stock is like the sensible older sibling of common stock - less flashy, but more dependable. C is my pick for the safer investment.
upvoted 0 times
Celeste
1 months ago
I prefer the stability of preferred stock. C) Preferred dividends are usually cumulative.
upvoted 0 times
...
Eliz
2 months ago
I think common stock can be riskier because it doesn't have the same guarantees. C) Preferred dividends are usually cumulative.
upvoted 0 times
...
Gearldine
2 months ago
I agree, preferred stock is definitely less risky. C) Preferred dividends are usually cumulative.
upvoted 0 times
...
...
Remona
3 months ago
Haha, I bet the finance professor who wrote this question loves to see students struggle with these nuanced stock market details. I'm going with C, the cumulative dividends seem key here.
upvoted 0 times
Deonna
29 days ago
Definitely, it's all about managing risk when it comes to investing in stocks.
upvoted 0 times
...
Tracey
1 months ago
I agree, it provides a level of security for investors that common stock may not offer.
upvoted 0 times
...
Truman
1 months ago
Yeah, it's important to have that safety net in case dividends are missed in the future.
upvoted 0 times
...
Nicolette
2 months ago
I think C is the right answer too, cumulative dividends make preferred stock less risky.
upvoted 0 times
...
Harris
2 months ago
I agree, the finance professor definitely knows how to make us think!
upvoted 0 times
...
Bernardo
2 months ago
I'm not sure, but B seems like a strong option as well.
upvoted 0 times
...
Margot
2 months ago
I'm leaning towards D, the higher dividend yield is appealing.
upvoted 0 times
...
Edelmira
3 months ago
I think you're right, C does seem like the best choice.
upvoted 0 times
...
...
Cheryll
3 months ago
I believe common stock has priority over preferred stock with regard to earnings and assets, making it riskier.
upvoted 0 times
...
Lorean
3 months ago
I was torn between B and C, but I'll go with C. The cumulative dividends on preferred stock provide a safety net for investors.
upvoted 0 times
Amber
1 months ago
It's important to consider the level of risk when choosing between common and preferred stock.
upvoted 0 times
...
Herman
2 months ago
Common stock does not have the same safety net as preferred stock with cumulative dividends.
upvoted 0 times
...
Stephaine
2 months ago
That's true, preferred stock is considered less risky because of the cumulative dividends.
upvoted 0 times
...
Niesha
2 months ago
I agree, the cumulative dividends on preferred stock can be a safety net for investors.
upvoted 0 times
...
...
Johnna
3 months ago
I agree with Erinn, preferred stock is less risky due to cumulative dividends.
upvoted 0 times
...
Micaela
3 months ago
I think C is the correct answer. Preferred dividends are usually cumulative, meaning if the company misses a payment, they have to make it up later. That makes preferred stock less risky for investors.
upvoted 0 times
...
Erinn
3 months ago
I think preferred stock is less risky because preferred dividends are usually cumulative.
upvoted 0 times
...

Save Cancel