The correct answer is: A. hybrid stock
Hybrid stock is a type of stock that combines features of both common stock and preferred stock. It is considered to be a hybrid because it has some of the characteristics of both types of stock.
Like common stock, hybrid stock gives the holder the right to vote on company matters. However, like preferred stock, hybrid stock also has a fixed dividend that must be paid before any dividends are paid to common stockholders.
Hybrid stock is often used by companies that want to raise capital but do not want to give up too much control to their shareholders. It can also be used by companies that want to attract investors who are looking for a higher return on their investment than they would get from common stock.
Here is a brief explanation of each option:
- Common stock is a type of stock that gives the holder the right to vote on company matters and to share in the company’s profits. Common stockholders are the owners of the company.
- Preferred stock is a type of stock that gives the holder the right to a fixed dividend, which must be paid before any dividends are paid to common stockholders. Preferred stockholders also have priority over common stockholders in the event of a liquidation.
- Debt liabilities are obligations that a company owes to its creditors. Debt liabilities can include loans, bonds, and notes payable.
- Hybrid stock is a type of stock that combines features of both common stock and preferred stock. It is considered to be a hybrid because it has some of the characteristics of both types of stock.