Question

Preferred stock has characteristics of both debt and common stock. Which characteristics of preferred stock resemble that of common stock

Answer 1

The characteristics of preferred stock that resemble that of common stock is that both give the stockholder partial ownership of the entity, otherwise, called equity rights.

Step-by-step explanation:

Preferred stocks do not confer on the stockholders the right of repayment until the company is liquidated, just like common stock, unless they are redeemable. They can be converted to common stock. Unlike common stock, preferred stock does not give voting rights to the stockholders. Preferred stockholders enjoy priority over a company's income because they are paid dividends before common stockholders.