Series 6 - Investment Company And Variable Contracts Products Representative Exam
Training Mode
Which of the following are true about callable preferred stock?
Issuers are likely to call securities when rates are rising. Callable preferreds have a higher stated dividend than straight noncallable preferred stock
A
Issuers are likely to call securities when rates are rising. Callable preferreds have a higher stated dividend than straight noncallable preferred stock. The corporation usually pays a premium that exceeds the stock's par value at the call in return for call privileges
B
Callable preferreds have a higher stated dividend than straight noncallable preferred stock. The corporation usually pays a premium that exceeds the stock's par value at the call in return for call privileges
C
Callable preferreds have a higher stated dividend than straight noncallable preferred stock. The corporation usually pays a premium that exceeds the stock's par value at the call in return for call privileges. Issuers are likely to call the stock when rates are falling.
D