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Management · Q528

International Finance and Treasury

Graduate and Post Graduate · Management · question 528

Q528

Preferred stock is considered as hybrid security because it includes

A.
representation of ownership interest
B.
fixed periodic payment
C.
higher liquidity
D.
both a and b
Answer

Answer: Option D

Solution

Answer: Option D
Solution:
Preferred stock is considered as hybrid security because it includes representation of ownership interest and fixed periodic payment.