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

Correct Answer: preferred stock

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.
Bissoy MCQ
#Management #International Finance And Treasury

Related Questions

Type of stock which have characteristics of bonds and common stock is classified as
A bonds equity
B common shares
C common stock
D preferred stock
You are considering investing in a firm and wish to place a value on the common stock. The dividend on the firm's stock has not changed in the last five years. In absence of any information suggesting future changes in the dividend rate, the most appropriate stock valuation model be the -----model.
A zero growth
B constant growth
C non-constant groth
D growing perpetuity
If Taka 4,500 was invested in bonds of a corporation when the price per bond was Tk. 9.00 and Taka 3,000 was invested in bonds of another corporation when the price was Tk. 10.00 per bond, what was the average price of bonds purchased?
A Tk. 9.625
B Tk. 9.50
C Tk. 9.40
D Tk. 9.375
Type of preferred stock whose payments are missed and must be paid before paying dividends of common stock is classified as
A non participating preferred stock
B participating preferred stock
C non cumulative preferred stock
D cumulative preferred stock
Assume the following shares outstanding : Preferred stock, 6% , Tk. 50 per value, cumulative, 1000 shares with dividends in arrears 3 years, for 20-1, 20-2 and 20-3. Common stock, Tk. 100 per value, 2000 shares. Total dividends declared in 20-4 were Tk. 50,000. The total amount of dividends to which common stockholders are entitled is :
A Tk. 62000
B Tk. 50000
C Tk. 45000
D Tk. 38000
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
Bonds issued for longer term and must be sold in country whom currency is not used in denomination of bonds are classified as
A interbank bonds
B intrabank bonds
C Australian bonds
D Eurobonds
Bonds used in purpose of specific projects which are financed by collateral for issuing bonds are classified as
A indenture bonds
B trustee bonds
C collateral bonds
D mortgage bonds
Type of bond for which bonds present value is greater than bonds face value is classified as
A coupon bond
B interest bonds
C discount bond
D premium bond
The mixing vat in a factory receives liquid ingredients through six separate value--- labeled R.S.T.U,Y and Z -- each of which has exactly two settings: open and closed.The mixing vat operator must ensure that each valve is set open or closed according to the following conditions: If T is open, both S and Z must be closed, R and Z cannot both be closed at the same time; If Y is closed, Z must also be closed;S and U cannot both be open at the same time. If the maximum number of valves that can be closed at the same time are closed which of the following must true?
A R is open
B S is open
C T is open
D Z is open

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