Question

what is not correct about preferred stocks? question 4 options: generally have fixed dividends. never have voting rights. can be considered as hybrid securities. preferred stockholders have limited liability.

Answer 1

One incorrect statement about preferred stocks is that they can be considered as hybrid securities. Another incorrect statement is that they never have voting rights. However, one correct statement is that preferred stockholders have limited liability.

Step-by-step explanation:

One thing that is not correct about preferred stocks is that they can be considered as hybrid securities. Preferred stocks are actually considered to be hybrid securities because they have characteristics of both stocks and bonds. They have fixed dividends, which means that the dividend payment is set at a predetermined rate and is paid regularly.

Another thing that is not correct about preferred stocks is that they never have voting rights. Unlike common stocks, which typically have voting rights, preferred stocks generally do not have voting rights. This means that preferred stockholders do not have a say in the company's decision-making process.

However, one correct statement about preferred stocks is that preferred stockholders have limited liability. This means that their liability is limited to the amount they have invested in the stock and they are not personally responsible for the company's debts.