Which of the Following Are Characteristics of Preferred Stock? I)

question 5

Multiple Choice

Which of the following are characteristics of preferred stock? I) It pays its holder a fixed amount of income each year at the discretion of its managers.
II) It gives its holder voting power in the firm.
III) Its dividends are usually cumulative.
IV) Failure to pay dividends may result in bankruptcy proceedings.

• A)I, III, and IV
• B)I, II, and III
• C)I and III
• D)I, II, and IV

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Definitions:

Annualized Return

The geometric average amount of money earned by an investment each year over a given time period, often used to compare the performance of investments with different time horizons.

FDA

The Food and Drug Administration, a federal agency of the United States responsible for protecting and promoting public health through the control and supervision of food safety, tobacco products, dietary supplements, prescription and over-the-counter pharmaceutical drugs, vaccines, biopharmaceuticals, medical devices, and veterinary products.

Cancer-Fighting Drug

A type of medication or treatment designed to prevent, treat, or mitigate cancer.