n NISM Certifications
NSM General NISM
Medium

Which of the following is a characteristic of 'Preferred Stock'?

Practice question from NISM Series I - Mock Test 1 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    It has voting rights

  2. It pays fixed dividends and has priority over common stock in dividends

    Correct answer

  3. C

    It is always convertible into bonds

  4. D

    It has no priority in dividends or assets

A full explanation for this question is being written. In the meantime, the correct answer is highlighted above.

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