Corporations may not retire preferred stock in order to avoid paying the preferred dividends.

Name: Corporations may not retire preferred stock in order to avoid paying the preferred dividends.
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Question

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Corporations can retire preferred stock, which means buying it back from the shareholders, as a way to stop paying dividends on that stock. This action is subject to the terms outlined in the stock's issuance agreement.

Corporations May Not Retire Preferred Stock in Order to Avoid