Which of the following is true of preferred stock?
A) It has features of bonds and a common stock.
B) It has a claim on assets prior to creditors in the event of liquidation.
C) Its dividends can be paid only after paying dividends to the common stockholders.
D) It usually has a maturity of thirty years.

Question

Quizplus · Accepted Answer

Preferred stock combines aspects of both bonds and common stock, offering fixed dividends like bonds and equity ownership like common stock, but it does not have a maturity date like bonds typically do.

Which of the Following Is True of Preferred Stock