A tax-paying corporation would prefer to invest short-term money in
A)warrants.
B)auction-rate preferred stock.
C)common stock.
D)long-term bonds.

Question

Quizplus · Accepted Answer

A tax-paying corporation would prefer to invest short-term money in auction-rate preferred stock because it offers higher yields than traditional short-term investments, such as Treasury bills or money market funds. Additionally, auction-rate preferred stock is considered a relatively safe investment because it is backed by highly-rated companies and offers a stable source of income.

A Tax-Paying Corporation Would Prefer to Invest Short-Term Money in