All preferred stock has an obligatory sinking fund.

Name: All preferred stock has an obligatory sinking fund.
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Quizplus · Accepted Answer

Not all preferred stocks have an obligatory sinking fund; it is a feature specific to certain issues and is not a universal characteristic of preferred stock. A sinking fund is a means for a company to pay off part of their debt over time, but not all preferred stocks are issued with this requirement.

All Preferred Stock Has an Obligatory Sinking Fund