19. Preferreds technically have an unlimited life because they have no fixed maturity date.

a.True

b.False

20. What are reasons a Company will issue preferred stock?

Multiple answers

a.Because Institutions tend not to invest in preferred stock.

b.Preferred stocks are easier to market since the majority of preferred stock is bought and held by institutions.

c.For the flexibility of payments because preferred dividends may be suspended in case of corporate cash problems.