Q388
A stock which is hybrid and works as a cross between debt and common stock is considered as
A.
hybrid stock
B.
common liabilities
C.
debt liabilities
D.
preferred stock
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
A stock which is hybrid and works as a cross between debt and common stock is considered as preferred stock. Preferred stockholders have a higher claim to dividends or asset distribution than common stockholders.