Q844
Stock which has fixed payments and failure of payments which do not lead to bankruptcy is classified as
A.
common stock
B.
preferred stock
AnswerC.
bonds equity
D.
common shares
Answer: Option B
Solution
Answer: Option B
Solution:
Stock which has fixed payments and failure of payments which do not lead to bankruptcy is classified as preferred stock. Preferred stock refers to a class of ownership that has a higher claim on assets and earnings than common stock has.