Answer:
C) Both are true.
Explanation:
A common stock is a type of security that represents an ownership interest in a firm. Holders of a common stock are paid a percentage of the firm's profit as dividends at particular periods.
Holders of common stock have voting right in the company where the stock is bought.
A preferred stock is a security that pays holders a fixed amount of dividend at a particular period.
It has both the features of a common stock and bond because just like common stock, it can appreciate in price and like bonds, a fixed amount of dividends is paid.
Holders of a preferred stock are paid dividends before common stock shareholders.
Holders of a preferred stock do not have voting rights in the company where the stock is bought.
