Which of the Following Is True with Regard to Preferred

question 2

Short Answer

Which of the following is true with regard to preferred stock?
Dividends must be paid each year on preferred stock.
The growth potential of preferred stock is limited due to its fixed dividend.
Preferred stock is more risky than common stock.
The usual par value of a preferred share is $1.
It cannot be callable.

---

Definitions:

Service Brake Priority

A trailer air brake circuit in which air is routed first to the trailer reservoirs when the trailer supply valve (on the tractor) is activated. This means that air pressure must exceed 60 psi in the reservoirs before the hold-off circuit will charge and release the parking brakes.

Reservoirs

Structures or natural formations used for storing water or other fluids.

Hold-Off Pressure

The pressure needed to prevent a fluid or gas from moving forward or leaking in a system.

Spring Brake Circuit

A pneumatic brake system component that uses compressed air acting on a spring to apply braking force.