Q607
Security which has characteristics of common stock and bonds both at same time is classified as
A.
preferred stock
AnswerB.
voted stock
C.
cumulative stock
D.
fundamental stock
Answer: Option A
Solution
Answer: Option A
Solution:
Security which has characteristics of common stock and bonds both at same time is classified as preferred stock. Preferred stock (also called preferred shares, preference shares or simply preferreds) is a form of stock which may have any combination of features not possessed by common stock including properties of both an equity and a debt instrument, and is generally considered a hybrid instrument.