Identify the Statement Which Correctly Describes Preferred Stocks

question 36

Multiple Choice

Identify the statement which correctly describes preferred stocks.

• A)Preferred stock can never be converted into common stock.
• B)The right to vote is usually granted only in the event that dividends due are fully repaid.
• C)Redemption of preferred stocks is allowed irrespective of whether the cost would make the corporation insolvent.
• D)A corporation can buy back preferred stocks from holders even if they do not wish to sell them.

---

Definitions:

Pie Chart

A type of graph in which a circle is divided into sectors that each represent a proportion of the whole.

Emphasize A Slice

A technique in pie charts where a particular segment is visually distinguished from the others to highlight its importance.

Format

The arrangement, design, or layout of data in a particular file or document, often specified by the file type or software used.

Chart Element

Components that make up a chart, such as axis titles, legend, data labels, and plot area, allowing for customization and detail in data representation.