Preferred Stock Is a Hybrid⎯a Sort of Cross Between a Common

question 22

True/False

Preferred stock is a hybrid⎯a sort of cross between a common stock and a bond⎯in the sense that it pays dividends that normally increase annually like a stock but its payments are contractually guaranteed like interest on a bond.

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Definitions:

Positive Evaluative Adjectives

Adjectives used to express positive evaluations or judgements about people, objects, or situations.

Evaluative Adjectives

Adjectives used to express an assessment or judgment about the quality, value, or condition of someone or something.

Open-Minded

Means that a person is tolerant of divergent views and sensitive to the possibility of his or her own possible biases. An open-minded person respects the right of others to have different opinions.

One-Way Street

A situation or condition that allows movement or action in only one direction, often used metaphorically to describe a non-reciprocal relationship.