February 23, 2017

Homework Help: investing 3-2

Posted by Johnny on Sunday, February 22, 2009 at 12:03am.

Which of the following preferred stock properties would
provide the best argument favoring purchase of preferred
stock by an investor?

A. When long-term bond yields decline, the value of preferred
stock can potentially rise.

B. Because preferred stock trading volume is lower than
common stock trading volume, preferred stock prices are
less volatile than common stock prices.

C. The yield differential between preferred stock and
bonds is smaller than would be expected on the basis
of risk differentials.

D. Preferred stockholders receive preferential treatment over
lower-class, common stockholders when the corporation
earns sufficient profit to pay creditors and shareholders.

I would think it's D, but not sure

Answer This Question

First Name:
School Subject:

Related Questions

More Related Questions