Question: Preferred stock is often called a hybrid security because it has some characteristics that are typical of debt and others that are typical of equity.

Preferred stock is often called a hybrid security because it has some characteristics that are typical of debt and others that are typical of equity. The following table lists several characteristics of preferred stock. Determine which of these characteristics are consistent with debt securities and which are consistent with common stock.
Characteristic
Debt Security
Common Stock
May have a sinking fund provision
Usually has no specified maturity date
Usually has no voting rights

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