Which of the Following Is Not a Common Characteristic of Preferred

question 50

Multiple Choice

Which of the following is not a common characteristic of preferred stock?

• A)Voting rights
• B)Preference as to dividends
• C)Preference in liquidation
• D)Callability by the corporation
• E)None of the answers are correct.

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Definitions:

Investing Activities

Financial actions that involve the purchase and sale of long-term assets and investments not included in cash equivalents.

Net Cash

The amount of cash available after accounting for cash inflows and outflows, used to measure liquidity and cash position of a business.

Marketable Securities

Financial instruments and assets that can be easily converted into cash without significant loss of value.

Financing Activities

Transactions and events that affect long-term liabilities and equity, such as issuing debt or equity, repurchasing shares, and paying dividends.