Which of the Following Is TRUE of Preferred Stocks

question 117

Multiple Choice

Which of the following is TRUE of preferred stocks?

• A)Preferred stock with a conversion feature allows holders to change each share into a stated number of shares of common stock.
• B)Like bonds,preferred stocks are due for payment on a fixed maturity date along with interest.
• C)Restrictive covenants of preferred stocks include provisions about listing of stocks on the securities exchange and determining the price of stock.
• D)A firm's bond indenture indicates how many authorized preferred shares and bonds it can issue.

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