Which stock generally does not vote but has priority in dividends?

• A. Common Stock
• B. Bond
• C. Preferred Stock
• D. Treasury Stock

Answer: (C)

Dividend priority is what sets these securities apart. Preferred stock typically carries a fixed dividend and is paid before any dividends to common stock, yet it usually does not grant voting rights. This combination makes it a hybrid: it offers more predictable income than common stock but without the voting power.

Common stock, in contrast, usually has voting rights and only shares in dividends after the preferreds are paid, which is why it doesn’t fit the “priority in dividends” part. Bonds are not stock at all; they are debt instruments with fixed interest payments and creditor priority in liquidation, not dividends, so they sit outside the stock category. Treasury stock refers to the company’s own shares it has repurchased, which do not vote and do not receive dividends.

So, the instrument that generally does not vote but has priority in dividends is preferred stock.