A corporation that issues preferred stock will mostly likely call the stock when the market rates of interest increase.

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Quizplus · Accepted Answer

This statement is false. Preferred stock is typically non-callable, meaning that the corporation cannot redeem it before its maturity date. However, some types of preferred stock may have call provisions, so it is important to carefully read the terms of the stock before investing. Additionally, market rates of interest do not necessarily impact a corporation's decision to call preferred stock. Instead, the decision may be based on other factors such as the company's financial situation or changes in tax laws.

A Corporation That Issues Preferred Stock Will Mostly Likely Call