Preferred Stock May Have Its Dividend Rate Listed as a Percentage

question 14

True/False

Preferred stock may have its dividend rate listed as a percentage of par value per share or as a flat stated amount.

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Definitions:

Delivery Date

The specific date on a futures or options contract on which the underlying asset must be delivered or settled.

Futures Contracts

Standardized legal agreements to buy or sell something at a predetermined price at a specified time in the future.

Organized Exchange

A regulated market where securities, commodities, derivatives, and other financial instruments are traded.

Forward Contracts

A financial contract between two parties to buy or sell an asset at a predetermined future date for a price agreed upon today.