Answer:
II. Preferred Stocks
Explanation:
Preferred Stocks are those stocks who have preferential rights with respect to principal repayment and dividend payments over common stocks but are devoid of voting rights.
Often, higher dividend is paid on preferred stock than on common stock.
Generally, dividend paid on preferred stock falls under the category of ordinary dividend.
Except for investors of higher tax bracket, preferred stock holders are subject to a lower 15% maximum tax rate.
