Preferred stock is less risky than common stock,but more risky than debt.

Name: Preferred stock is less risky than common stock,but more risky than debt.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Preferred stock represents ownership in a company but typically offers fixed dividends and a priority in receiving payment over common stockholders in the event of bankruptcy or liquidation. Therefore, it is less risky than common stock but still carries more risk than debt, which represents a fixed obligation to repay a loan with interest.

Preferred Stock Is Less Risky Than Common Stock,but More Risky