Preferred stock is similar to a bond in the following way
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 their investors. Preferred stock does not always have a maturity date and does have a growth factor, making choices A and C incorrect.

Preferred Stock Is Similar to a Bond in the Following