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Basic Question 14 of 18
Which of the following securities is NOT a fixed-income obligation?
B. Collateral trust bonds
C. Warrants
D. Preferred stock
A. Convertible bonds
B. Collateral trust bonds
C. Warrants
D. Preferred stock
User Contributed Comments 4
| User | Comment |
|---|---|
| johntan1979 | Warrants are classified under "equities". |
| gill15 | So is preferred stock but I guess becasue for valuation purposes PS is treated as Fixed income securities when dividends are clearly paid....how do we know its clearly paid? |
| Logaritmus | Investopedia tells us that Preferred stock is equity, but usually has a fixed dividend payouts so it is fixed income security for its owner and we may treat it as a fixed-income obligation. |
| joeclark | PS is normally a debt instrument (technically). F*ck investopedia. |
I passed! I did not get a chance to tell you before the exam - but your site was excellent. I will definitely take it next year for Level II.
Tamara Schultz
Learning Outcome Statements
describe classifications of assets and markets
describe the major types of securities, currencies, contracts, commodities, and real assets that trade in organized markets, including their distinguishing characteristics and major subtypes
CFA® 2024 Level I Curriculum, Volume 3, Module 1.