Users of preferred stock include:
A) Utility companies
B) Acquiring firm in mergers and acquisitions
C) Large commercial banks
D) All of the above are users

Question

Quizplus · Accepted Answer

All of the above are users of preferred stock.

Utility companies can use preferred stock as a way to raise capital for capital-intensive projects.

Acquiring firms in mergers and acquisitions may use preferred stock to finance the acquisition.

Large commercial banks may also issue preferred stock as a way to raise capital to meet regulatory requirements.

Users of Preferred Stock Include