SIE - Securities Industry Essentials Exam

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Rank the following securities according to the likelihood of them paying a dividend in any given quarter from MOST likely to LEAST likely:

Noncumulative Preferred Stock, Common Stock, Cumulative Preferred Stock, Warrants
A
Cumulative Preferred Stock, Warrants, Noncumulative Preferred Stock, Common Stock
B
Cumulative Preferred Stock, Noncumulative Preferred Stock, Warrants, Common Stock
C
Cumulative Preferred Stock, Noncumulative Preferred Stock, Common Stock, Warrants
D

Explanations

( D ) is correct. Cumulative Preferred will receive dividends before noncumulative preferred, then is common stock. Warrants to do not receive dividends.

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