Due to regulatory capital requirements,there tends to be a concentration of preferred shares in the ________ industry.
A)airline
B)railroad
C)power generation
D)banking

Question

Quizplus · Accepted Answer

Preferred shares are a type of hybrid security that combines features of both debt and equity. They are considered Tier 1 capital for banks and other financial institutions and contribute significantly to their regulatory capital. Therefore, due to regulatory capital requirements, there tends to be a concentration of preferred shares in the banking industry.

Due to Regulatory Capital Requirements,there Tends to Be a Concentration