Corporations May Not Retire Preferred Stock in Order to Avoid

question 258

True/False

Corporations may not retire preferred stock in order to avoid paying the preferred dividends.

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Definitions:

Realize

To convert assets into cash or to acknowledge revenue or a profit in accounts.

Gains And Losses

The increase or decrease in an investment's value, respectively, often realized upon selling or valuing the investment at market price.

DAX-30 Index Futures

Futures contracts that speculate on the future value of the DAX, a stock index of 30 major German companies trading on the Frankfurt Stock Exchange.

Underpriced

A term describing a security or other asset that is selling for a price considered to be below its intrinsic or true value.