Products & Their RisksQuestion 60 of 398
An investor seeking regular income with more safety than common stock, but a higher fixed payment priority, would MOST likely choose:
a.Warrants of the same company
b.Stock rights of the same company
c.Additional common shares
d.The company's preferred stock
Explanation
Preferred stock pays a fixed dividend and ranks ahead of common stock for dividends and in liquidation, offering steadier income with more priority than common. Warrants and rights are speculative equity instruments, and more common stock would not add income priority.
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