Preferred stock may not have the same ownership privileges as common stock, but preferred stock offers a fixed dividend stream supported by a binding contractual obligation.

Name: Preferred stock may not have the same ownership privileges as common stock, but preferred stock offers a fixed dividend stream supported by a binding contractual obligation.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Preferred stock DOES have a fixed dividend stream, but does not carry a binding contractual obligation, as does debt.

Preferred Stock May Not Have the Same Ownership Privileges as Common