# Series 66 - Preferred stock

**URL:** <https://talk.achievable.me/t/series-66-preferred-stock/8963>\
**Category:** FINRA Series 66\
**Created:** [July 7, 2025, 3:25pm UTC](https://talk.achievable.me/t/series-66-preferred-stock/8963 "2025-07-07T15:25:33Z")\
**Posts on this page:** 3\
**Page:** 1

<div class="post-metadata">

**Author:** ![Kellie\_Schumm](https://talk.achievable.me/letter_avatar/kellie_schumm/32/5_5575768a8748004e209b776fc1b2916d.png) [@Kellie\_Schumm](https://talk.achievable.me/u/Kellie_Schumm)\
**Post date:** [July 7, 2025, 3:25pm UTC](https://talk.achievable.me/t/series-66-preferred-stock/8963/1 "2025-07-07T15:25:33Z")

</div>

This one really had me thinking… I was probably overthinking it…

ABC company has 100,000 shares of preferred stock outstanding. Par value $22, current value $19. ABC company has paid a 10% dividend the past few years to preferred stock holders. ABC company files for bankruptcy & has enough to pay preferred stock holders. How much will ABC company pay preferred stock holders?

A. $2,420,000  
B. $2,090,000  
C. $2,200,000  
D. $1,900,000

---

<div class="post-metadata">

**Author:** ![Mataia](https://talk.achievable.me/user_avatar/talk.achievable.me/mataia/32/1262_2.png) [@Mataia](https://talk.achievable.me/u/Mataia)\
**Post date:** [July 7, 2025, 8:39pm UTC](https://talk.achievable.me/t/series-66-preferred-stock/8963/2 "2025-07-07T20:39:50Z")

</div>

Hello @Kellie_Schumm,

Is this one of our Achievable questions? If you have feedback on a specific question in our materials, please use the feedback icon ✉ at the top right of the quiz screen to write us a note and we would be happy to help clarify!

I would think the answer is C. $2,200,000 because in a liquidation event like bankruptcy, preferred shareholders are paid based on par value, not market value. So, 100,000 shares × $22 par = $2,200,000. This assumes there are no cumulative unpaid dividends owed - which the question doesn’t suggest.

Hope this helps!  
-Mataia

---

<div class="post-metadata">

**Author:** ![Kellie\_Schumm](https://talk.achievable.me/letter_avatar/kellie_schumm/32/5_5575768a8748004e209b776fc1b2916d.png) [@Kellie\_Schumm](https://talk.achievable.me/u/Kellie_Schumm)\
**Post date:** [July 7, 2025, 10:12pm UTC](https://talk.achievable.me/t/series-66-preferred-stock/8963/3 "2025-07-07T22:12:00Z")

</div>

This was a question from the actual exam. I couldnt remember it word for word… Thank you for your response!