62 Which definition correctly explains the difference between preferred stock and common stock? Preferred stock holders have more voting rights than common stock holders. Preferred stock holders have a higher risk of not receiving dividends than common stock holders Preferred stock holders have more of a claim to dividends than common stock holders. Preferred stock holders receive a higher or lower dividend depending on how the business is performing, while common stock holders' dividend does not change. NEXT > BOOKMARK CLEAR 43 What is the purpose of compounding cash flows? To find the future value of a present value To find the present value of a future value To calculate the average of all cash flows To calculate the variance of all cash flows TEST NAME: PB01 58 Which term is generally used to describe debt securities with a time to maturity of less than one year? Sinking funds Treasury notes Callable bonds Money market instruments