Asked by
Emilee Garner
on Dec 02, 2024Verified
All of the following are characteristics of preferred stock that make it similar to bonds except:
A) constant periodic payments.
B) ahead of common stock with respect to dividends.
C) no voting rights.
D) periodic payment is tax deductible to the paying company.
E) All of the above characteristics make preferred stock similar to bonds.
Preferred Stock
is a type of stock that provides a specific dividend that is paid before any dividends are paid to common stock holders, and typically does not have voting rights.
Periodic Payments
Recurring payments made over a period of time, such as monthly mortgage or insurance payments.
Voting Rights
The rights of shareholders to vote on corporate matters, such as the election of the board of directors.
- Differentiate between common stock and preferred stock, highlighting their distinct characteristics.
Verified Answer
AR
Learning Objectives
- Differentiate between common stock and preferred stock, highlighting their distinct characteristics.