Practice mode Finance

Which securities, issued by major corporations, are riskier than corporate bonds?

Correct answer C. Preferred stocks

Explanation

Preferred stock ranks behind bonds in a claim on income and assets, and its dividends can be skipped without default, so it carries more risk than corporate bonds.

Report a problem

Answer checked How we write and check questions

Tip: press A, B, C or D to answer, and N for the next question.

Advertisement

Have a question about this answer?

Your email address will not be published. Required fields are marked *

Links and website addresses are not allowed in comments.