Preferred stock is a type of investment security which represent ownership in a corporation and is also a debt instrument of the company.
Explanation:
<u>Preferred stock is a type of investment security which represent ownership in a corporation and is also a debt instrument of the company</u>.It is basically of 5 types
- Cumulative
- Participating
- Convertible
- Callable
- Adjustable-rate
Preferred stock comes in many varieties.
<u>Cumulative preferred stock</u> includes a requirement that past dividends not paid must be paid in future years before any common stock dividends may be paid.
<u> Participatory preferred stock </u>includes the ability to collect dividends with the common stock owners after all preferred dividends have been paid.
<u> </u><u>Convertible preferred stock </u>may be turned in for common stock under certain conditions.
<u> Callable </u>preferred stock, also known as callable preferred stock, comes with the risk that the issuing company may<u> buy back </u> the shares under certain conditions.
The answer to your question is A. The right to be redress
