Interest rates impact the market value of common stock more than they impact the market value of preferred stock.

Name: Interest rates impact the market value of common stock more than they impact the market value of preferred stock.
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Question

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Preferred stocks often have fixed dividend rates, making their value more sensitive to changes in interest rates compared to common stocks, which do not have fixed dividends and are more influenced by the issuing company's performance and profitability.

Interest Rates Impact the Market Value of Common Stock More