Answer:
b. Preferred Stock
Explanation:
Stock or equity represents partial ownership in a company. A person holding stock is a shareholder and is entitled to a share of the company's profit. Stocks are of two types of common stock and preferred stock.
The term preferred stock implies that shareholders with preferred stock are given preference in dividend sharing. They receive their share of dividends before the common shareholders. Preferred stock shareholder receives a fixed amount of dividend throughout the years. The dividend is always higher than that of common stock shareholders and is paid monthly or quarterly. Preferred stockholders have no voting rights in the company.
