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List 2 things that preferred stock has in common with common stock. List 2 things that...

List 2 things that preferred stock has in common with common stock. List 2 things that preferred stock has in common with bonds (debt).

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Answer #1

Two things that preferred stock has in common with common stock-

A. Preferred stock will be having voting rights even though they are related to specific matters

B. Preferred stock will be repaid dividend

Two things that preferred stock has in common with bonds-

A. Preferred stock will be having a fixed liability and there should be fixed payment of dividend.

B. Preferred stock will also have higher security on dissolution of the company because they will be having a secured rights to claim assets before equity share holder like bonds.

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