Preferred stock question

FINRA FINRA Series 7
1

Not sure if my brain is just fried from too many quiz questions lol, but this one isn’t clicking. Q8T4V-9RZMJ regarding convertible vs. non-convertible preferred asking which statement is true. One option was ‘non-convertible trades @ lower mkt price than convertible’, which was marked false. I thought without the added feature it would offer higher yields and trade at a lower price?

Also, several of the questions, when referencing company names (ABC, ZZZ, etc.) regarding preferred stock, have different company names listed in answers. (Like ABC company will offer higher yields than ABC company). Are those just typos, or to show that the actual test question may try to trick regarding incorrect company names listed? Ex.s are MBW8Q-XYXK7, QR7DGT-XJVTH

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2

Hi @Mcjb210,

You’re right - this question had two correct answers: it is correct that the non-convertible security will trade at a lower market price than the convertible one.

I’ve also corrected the mismatch between the stock tickers, which was not intentional.

Thanks for pointing this out!

3

Ah ok, thanks so much!

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