Which of the following statements is FALSE?

1. Skipped preferred dividends become a liability of the company

2. Preferred stock cannot be converted into common stock

3. Preferred stock usually has a stated or par value but unlike bonds, this par value is not repaid at maturity because preferred stocks do not have a maturity date

4. The only time the par value of preferred stock would be paid to the shareholder is if the company ceases operations or retires the preferred stock