QUESTIONS 79 THROUGH 90 RELATE TO EQUITY INVESTMENTS

87. - MOCK AND SAMPLE EXAMS CFA CFA LEVEL I MOCK EXAM AFTERNOON 2013
MOCK AND SAMPLE EXAMS CFA CFA LEVEL I MOCK EXAM AFTERNOON 2013
87. Which of the following is most accurate concerning key characteristics of different types of preference shares? A. Preference shares have characteristics of both debt and equity securities. B. Preference shareholders rank above subordinated bondholders with respect to claims on the company’s net assets upon liquidation. C. The price of convertible preference shares tends to be more volatile than their underlying common shares because they do not allow investors to share in profits of the company.