Which one of the following is a type of equity security that has a fixed dividend and a priority status over other equity securities?
A)senior bond
B)debenture
C)warrant
D)common stock
E)preferred stock

Question

Quizplus · Accepted Answer

Preferred stock is a type of equity security that has a fixed dividend and a priority status over other equity securities. This means that if the company goes bankrupt and has to liquidate its assets, preferred stockholders will be paid off first before common stockholders. Senior bonds and debentures are types of debt securities, while warrants are a type of derivative security. Common stock does not have a fixed dividend or priority status over other equity securities.

Which One of the Following Is a Type of Equity