Which One of the Following Has a Claim to Dividends

question 33

Multiple Choice

Which one of the following has a claim to dividends and also a superior claim over common stock?

• A) preferred stock
• B) callable bond
• C) convertible bond
• D) put bond
• E) equipment trust certificate

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Definitions:

Bond

A security reflecting a relatively long-term debt relationship between the issuer (borrower) and the buyer (lender).

Financial Market

A marketplace where buyers and sellers engage in the trade of assets such as stocks, bonds, currencies, and derivatives.

Securities

Financial instruments representing an ownership position, a creditor relationship, or rights to ownership, such as stocks, bonds, and options.

Regulated

Controlled or governed according to rules, typically by a government agency or authority.