Preferred stock is a source of long-term funds that requires a future repayment of the stockholder's investment.

Name: Preferred stock is a source of long-term funds that requires a future repayment of the stockholder's investment.
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Question

Quizplus · Accepted Answer

Preferred stock does not require a future repayment of the stockholder's investment. Instead, it pays a fixed dividend to the investor. However, it may have features that resemble debt, such as a callable or convertible option, which can affect the investor's returns.

Preferred Stock Is a Source of Long-Term Funds That Requires