1. Which of the following statements regarding stock is NOT true?

A. Common stock is a variable income security because dividends can be increased or decreased at management's discretion.

B. Preferred stock is non-voting, non-participating, sometimes convertible to common stock, and often callable.

C. Common stock has voting rights, preemptive rights, and may have credit ratings.

D. Preferred stock is considered a hybrid security with no fixed maturity and fixed dividends stated as a percentage of par.

E. Common stock has the lowest standing in the event of a liquidation because common stock shareholders are paid last.

1. Which of the following statements regarding stock is NOT true? A. Common stock is a variable income security because dividends can be inereased or decreased at manngement's discretion. B. Preferred stock is non-voting, non-participating, sometimes convertible to common stock, and often eallable. C. Cormmon stock has voting rights, preemptive rights, and may have eredit ratings. D. Preferred stock is considered a hybrid security with no fixed maturity and fixed dividends stated as a pereentage of par. E. Common stock has the lowest standing in the event of a liquidation because common stock sharcholders are paid last