Question

Which of the following features of preferred stock makes the security more like debt than an equity instrument?a) Votingb) Noncumulativec) Participatingd) Redeemable

Answer 1

Answer: Option (D)

Step-by-step explanation:

Redeem-ability is one of the features of the preferred stocks that tends to make this security look more like a debt than any equity instrument. Redeemable or Redeem-ability refers to the state or part at which an individual is able to recover or redeem his money or any equivalent after a given period of time.