1. Why is preferred stock considered to be a hybrid security? 2. Many corporations invest in preferred...
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2. Many corporations invest in preferred stocks. Can you think of any reason why that is the case like dividend exclusion?
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
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1 Preferred stock is one class of ownership and a special equity security and it has contained both ...View the full answer
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Related Book For
Microeconomics An Intuitive Approach with Calculus
ISBN: 978-0538453257
1st edition
Authors: Thomas Nechyba
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