Preferred shares are ______ financing.
A)a form of debt
B)a form of equity
C)a combined form of debt and equity
D)different from debt and equity

Question

Quizplus · Accepted Answer

Preferred shares represent ownership in a company, similar to common shares (equity), but typically come with specific rights such as fixed dividend payments. They do not represent a form of debt, as bond issuances do. They may have some characteristics of both debt and equity, but are primarily considered a form of equity financing.

Preferred Shares Are ______ Financing