How is preferred stock similar to bonds?

A) Constant payment
B) Pays both principal and interest to investor
C) Fixed maturity date
D) Both a & c
E) All of the above

Preferred Stock

A category of corporate ownership that has precedence over common stock in terms of asset and earnings claims, typically featuring fixed dividend payments.

Bonds

Fixed-income instruments that represent a loan made by an investor to a borrower, typically corporate or governmental.

Constant Payment

A fixed amount of money paid periodically in a loan agreement until the loan is repaid in full, including both principal and interest.