It is false that an advantage of purchasing preferred stock is that preferred shareholders are guaranteed to receive dividend payments each year.
Given a statement related to the preferred stockholders and dividend.
We are required to tell whether the statement is true or not.
No, the given statement is not true.
A preferred stock is basically a class of stock that is granted certain rights that differ from common stock.
Preferred shareholders basically have priority over a company's income, meaning they are paid dividends before common shareholders.
So,the statement is false because they have a advantage that they will get dividend prior to other shareholders but it is not fixed.
Hence it is false that an advantage of purchasing preferred stock is that preferred shareholders are guaranteed to receive dividend payments each year.
Learn more about shareholders at https://brainly.com/question/25847981
#SPJ4
