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Commerce · Q836

Financial Management

Graduate and Post Graduate · Commerce · question 836

Q836

Type of stock which have characteristics of bonds and common stock is classified as

A.
bonds equity
B.
common shares
C.
common stock
D.
preferred stock
Answer

Answer: Option D

Solution

Answer: Option D
Solution:
Type of stock which have characteristics of bonds and common stock 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.