Preferred stock is similar to a bond in the following way:

Name: Preferred stock is similar to a bond in the following way:
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Both preferred stock and bonds provide a stated income stream. Preferred stock pays a fixed dividend while bonds pay interest. The other options are incorrect. Preferred stock does not always contain a maturity date and may have a growth factor similar to common stock, while bonds do not. Additionally, preferred stock pays dividends, not interest payments like bonds.

Preferred Stock Is Similar to a Bond in the Following