Why Are Preferred Stocks Often Referred to as "Hybrid" Securities

question 31

Multiple Choice

Why are preferred stocks often referred to as "hybrid" securities?

• A) They are similar to money market as well as capital market securities.
• B) Owners have the same voting rights as bondholders in the annual stockholders meeting.
• C) They make fixed payments such as bonds but are not legal obligations of the issuer.
• D) Like fixed income securities, they have a maturity date.

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Biological classification based on physiological differences among organisms, commonly categorized as male or female.

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