Which of the following is true of common stock?
A. Common stock is often referred to as a hybrid security.
B. Common stock often contains some of the same characteristics as bonds.
C. Most common stock traditionally pays a constant income called interest.
D. A firm can be forced into bankruptcy if it misses common stock dividend payments.
E. Dividends must be paid on preferred stock before they can be paid on common stock.
Answer: E
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