Question

From the statements below, choose the one that is Correct.

Group of answer choices

Since they trade on the primary market, closed-end investment companies and ETFs never trade at a discount to their NAVs.

One disadvantage of being a REIT investor is that the investor still has to operate the properties on his or her own time.

Preferred stockholders dividends must be paid prior to common stockholder dividends.

The only difference between a hedge fund and a mutual fund is that hedge funds tend to pursue higher risk strategies.

April 11 is the ex-dividend date for a dividend that is to be paid on April 12 to those stockholders of record as of May 10.

Answer 1

The dividend which is to be paid to the preferred shareholders of the company is to be paid before the the dividend which is to be paid to the common shareholders, because preferred shareholders dividend payments are mandatory in nature whereas payment of dividend to equity shareholders are not mandatory in nature.

All the other statements in regards to primary market and hedge fund along with dividend are false

Correct answer will be option( C) preferred stock holder dividend must be paid prior to common stockholders dividend.