What is Preferred Stock? - Definition, Types & Advantages

Instructions:

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What is preferred stock?

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1. What is a benefit to owning preferred stock over owning common stock?

2. Name two types of preferred stock.

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About This Quiz & Worksheet

This worksheet and quiz can help you check your knowledge of the different types of preferred stock that exist today. Topics you will need to know in order to pass the quiz include the definition of preferred stock and benefits of having this type of stock.

Quiz & Worksheet Goals

This quiz and worksheet can help you review:

  • Types of preferred stock
  • Benefits of having preferred stock
  • Definition of preferred stock

Skills Practiced

Use this worksheet and quiz to practice the following skills:

  • Reading comprehension - ensure that you draw the most important information from the related stock lesson
  • Knowledge application - use your knowledge to answer questions about the benefits of having preferred stock
  • Information recall - access the knowledge you have gained regarding the different types of preferred stock

Additional Learning

To learn more about preferred stock, review the accompanying lesson on What is Preferred Stock? - Definition, Types & Advantages. This lesson will help you:

  • Identify the different types of preferred stock
  • Describe the advantages of having preferred stock
  • Compare and contrast cumulative preferred stock and callable preferred stock
  • Define convertible preferred stock
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