Security which has characteristics of common stock and bonds both at same time is classified as
A. preferred stock
B. voted stock
C. cumulative stock
D. fundamental stock
Answer: Option A
Solution(By Examveda Team)
Security which has characteristics of common stock and bonds both at same time is classified as preferred stock. Preferred stock (also called preferred shares, preference shares or simply preferreds) is a form of stock which may have any combination of features not possessed by common stock including properties of both an equity and a debt instrument, and is generally considered a hybrid instrument.Related Questions on International Finance and Treasury
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