Which of the following types of securities is referred to as a hybrid security?

Question

Quizplus · Accepted Answer

Preferred stock is a type of security that combines characteristics of equity and debt. Like equity, it represents ownership in a company, but like debt, it usually pays a fixed dividend and has a preference over common stock in terms of receiving dividends and assets in the event of liquidation. This combination of characteristics makes it a hybrid security.

Which of the Following Types of Securities Is Referred to as a Hybrid