Series 6 - Investment Company And Variable Contracts Products Representative Exam
Which of the following statements about preferred stock are true?
It is an equity security. It pays fixed dividendsA
It is an equity security. All corporations issue preferred stockB
It pays fixed dividends. Preferred stockholders are not paid dividendsC
All corporations issue preferred stockD
Preferred stock is an equity security. Preferred stock pays FIXED (not variable) dividends, where the common stock may not pay any dividends at all - or if any, it will be variable. All corporations do not issue preferred stock.