Question

Preferred stock comes in many varieties. ____ preferred stock includes a requirement that past dividends not paid must be paid in future years before any common stock dividends may be paid. ____ preferred stock includes the ability to collect dividends with the common stock owners after all preferred dividends have been paid. ____ preferred stock may be turned in for common stock under certain conditions. ____ preferred stock, also known as callable preferred stock, comes with the risk that the issuing company may____ the shares under certain conditions. Fill in the blanks with words that would best complete the passage. a. Cumulative b. Redeemable c. Convertible d. repurchase e. resell f. Transferable g. Sellable h. Common i. Participating

Answer 1

Preferred stock is a type of  investment security which represent ownership in a corporation and is also a debt instrument of the company.

Explanation:

Preferred stock is a type of  investment security which represent ownership in a corporation and is also a debt instrument of the company.It is basically of 5 types

1. Cumulative
2. Participating
3. Convertible
4. Callable
5. Adjustable-rate

Preferred stock comes in many varieties.

Cumulative  preferred stock includes a requirement that past dividends not paid must be paid in future years before any common stock dividends may be paid.

Participatory preferred stock includes the ability to collect dividends with the common stock owners after all preferred dividends have been paid.

Convertible preferred stock may be turned in for common stock under certain conditions.

Callable preferred stock, also known as callable preferred stock, comes with the risk that the issuing company may buy back the shares under certain conditions.