_____ stock is an equity security that has some of the characteristics of debt.

Question

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Preferred stock is often referred to as a hybrid security because it has features of both equity and debt. It represents an ownership stake in the issuing company but also guarantees a fixed dividend payment, similar to a bond. This fixed dividend payment makes preferred stock more similar to debt than common stock, which generally has no guaranteed dividend payment.

_____ Stock Is an Equity Security That Has Some of the Characteristics