Preferred stock has all but which of the following characteristics?
A) No stated maturity.
B) A fixed dividend payment that carries a higher precedence than common stock dividends.
C) The same binding contractual obligation as debt.
D) Preferred lacks the full ownership privilege of common stock.

Question

Quizplus · Accepted Answer

Preferred stock does not have the same binding contractual obligation as debt. While preferred stock typically has a fixed dividend payment that takes precedence over common stock dividends and lacks the full ownership privilege of common stock, it does not have a stated maturity or a contractual obligation to repay the initial investment like debt does.

Preferred Stock Has All but Which of the Following Characteristics