Which of the Following Features of Preferred Stock Makes the Security

question 49

Multiple Choice

Which of the following features of preferred stock makes the security more like debt than an equity instrument?

• A) Participating
• B) Voting
• C) Redeemable
• D) Noncumulative

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Definitions:

Creative

Relating to or involving the imagination or original ideas, especially in the production of an artistic work.

Nonconforming

The act or condition of not adhering to a traditional norm or standard.

Big Five Traits

The Big Five traits are a model in psychology that outlines five broad dimensions of personality: openness to experience, conscientiousness, extraversion, agreeableness, and neuroticism.

Acronym

A word formed from the initial letters of other words, used as a shorthand or abbreviation (e.g., NASA for National Aeronautics and Space Administration).