Question

Common stock is called a hybrid security because it takes on the attributes of both preferred stock and bonds.

a. True
b. False

Answer 1

a. True

Step-by-step explanation:

In most stocks that attributes of both bonds and preferred stock, it is referred to as a hybrid security. Most organisations and the government recognized it as a medium of security in situations of seeking for loan.

Answer 2

false

Step-by-step explanation:

examples of hybrid stocks is convertible preferred shares

A common stock is a stock that entitles owners of the stock to a fixed amount of shares and holders of the stock are owners of the company where the stock is bought.