Question

Common stocks have less security than ______________ stock, but it also has greater potential for reward.

Answer 1

Your answer is, Preferred.

What is a Preferred Stock

Preferred stock is a component of share capital that may have any combination of features not possessed by common stock, including properties of both an equity and a debt instrument, and is generally considered a hybrid instrument.

Impact of a Preferred Stock

Companies that offer preferred shares instead of issuing bonds can accomplish a lower debt-to-equity ratio. That allows them to gain significantly more future financing from new investors. A company's debt-to-equity ratio is one of the most common metrics used to analyze the financial stability of a business.

The 5 types of Preferred Stock

• cumulative

• participating

• convertible

• callable

• adjustable-rate

Thus, option c is your answer.

Learn more about a Preferred Stock here: brainly.com/question/18068539