Series 6 - Investment Company And Variable Contracts Products Representative Exam

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This type of security is unique because of the risk that the issuer may buy it back and end dividend payments:

Adjustable-rate preferred
A
Callable preferred
B
Noncumulative preferred
C
Straight preferred
D

Explanations

Companies often issue callable preferred, which it can buy back from investors at a stated price on the call date or any date thereafter.

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