Concerning preferred stock

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Reference no: EM13885151

Which of the following statements is most CORRECT concerning preferred stock?

From the issuer’s point of view, preferred stock is less risky than bonds.

From the investor’s point of view, preferred stock is more risky than common stock.

Cumulative preferred stock is a stock that the unpaid preferred dividends must be paid before any dividends can be paid on the firm’s noncumulative preferred stock.

Whereas common stock has an indefinite life, preferred stocks always have a specific maturity date, generally 25 years or less.

Unlike bonds, preferred stock cannot have a convertible feature.

Reference no: EM13885151

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