A preferred stock would be an ideal example of:

Question

Quizplus · Accepted Answer

A preferred stock is a type of security that pays a fixed dividend to its holders, which is similar to a perpetuity, as the dividend payments are made forever as long as the holder owns the stock. A perpetuity is a stream of cash flows that do not have an end date, and the dividend payments from a preferred stock can be viewed as perpetuity payments. Therefore, a preferred stock is an ideal example of a perpetuity.

A Preferred Stock Would Be an Ideal Example Of