Preferred stock is similar to a bond in which of the following ways?
A)Preferred stock always contains a maturity date.
B)Both investments provide a fixed income.
C)Both contain a growth factor similar to common stock.
D)None of the above.

Question

Quizplus · Accepted Answer

Both preferred stock and bonds provide a fixed income to investors. Preferred stock does not have a maturity date and contains a growth factor similar to common stock, so options A and C are incorrect.

Preferred Stock Is Similar to a Bond in Which of the Following