Asked by
Nathen Hadgu
on Dec 02, 2024Verified
A preferred stock is an example of _____.
A) an annuity
B) an annuity due
C) a growing perpetuity
D) a perpetuity
Preferred Stock
Preferred stock is a type of equity security that provides dividends and certain privileges in the event of liquidation before common stock, but typically does not carry voting rights.
Perpetuity
An annuity that has no end, or a stream of cash payments that continue indefinitely.
- Differentiate between preferred and common stocks regarding their dividends, returns, and market valuation.
Verified Answer
AF
Learning Objectives
- Differentiate between preferred and common stocks regarding their dividends, returns, and market valuation.