Q986
Bonds which are more risky than corporate bonds and are issued by major corporations are classified as
A.
common stocks
B.
corporate stocks
C.
leases
D.
preferred stocks
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
Bonds which are more risky than corporate bonds and are issued by major corporations are classified as preferred stocks. Preferred stockholders have a higher claim to dividends or asset distribution than common stockholders.