Examveda

Bonds which are more risky than corporate bonds and are issued by major corporations are classified as

A. common stocks

B. corporate stocks

C. leases

D. preferred stocks

Answer: Option D

Solution (By Examveda Team)

Bonds which are more risky than corporate bonds and are issued by major corporations are classified as preferred stocks. Preferred stockholders have a higher claim to dividends or asset distribution than common stockholders.

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