Mrs$.$ Chopin, a wealthy customer, cannot decide whether she should invest in a common stock fund, or in a mutual fund who portfolio is limited to preferred shares. All of the following are true statements except:

Question $26$ options:

A$)$

Preferred shares represent ownership of junior debt securities$.$

B$)$

Common shares have a weaker claim to company assets than do shares of preferred in the event of bankruptcy.

C$)$

Preferred shares have a weaker claim to company assets than do bonds in the event of bankruptcy.

D$)$

Preferred shares represent ownership of equity in the issuing corporation.