alleryStart learning →Unlike a bond, a preferred share has no:
AMonetary value
BMarket listing
CManaging agent
DMaturity date
Answer & Solution
Correct answer: D. Maturity date
1. A bond repays its par value on a date.
2. Preferred stock never reaches such a date.
3. So it has no maturity date.
_Source: OpenStax Principles of Finance, Chapter 11, Stocks and Stock Valuation._
Keep practising Stock Valuation
Browse all Stock Valuation questions for Chartered Wealth Manager, or explore more Finance topics.