Which of the Following Is Not a Common Feature of Preferred

question 27

Multiple Choice

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

• A) Preferred stock has no voting rights.
• B) Preferred stock has no maturity.
• C) Management can suspend dividend payments even if dividends are being paid to common stockholders.
• D) Dividends paid to preferred stockholders are fixed when the stock is issued.
• E) Preferred stock can be convertible to common stock.

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Definitions:

Demand Curve

A graph showing the relationship between the price of a good and the quantity demanded by consumers over a range of prices.

Equilibrium Price

The cost where the amount of products offered matches the amount of products sought by consumers.

Equilibrium Quantity

The quantity of goods or services supplied is equal to the quantity of goods or services demanded at the market equilibrium price.

Supply Curve

A graphical representation showing the relationship between the quantity of goods that producers are willing to sell and the price levels of those goods.