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Preferred Stocks and Convertible Securities Learning Goals After studying this chapter, you should be able to: LG 1: Describe the basic features of preferred stock, including sources of value and exposure to risk. LG 2: Discuss the rights and claims of preferred stockholders, and note some of the popular issue characteristics that are often found with these securities. LG 3: Understand the various measures of investment worth, and identify several investment strategies that can be used with preferred stocks. LG 4: Identify the fundamental characteristics of convertible securities, and explain the nature of the underlying conversion privilege. LG 5: Describe the advantages and disadvantages of investing in convertible securities, including their risk and return attributes. LG 6: Measure the value of a convertible security, and explain how these securities can be used to meet different investment objectives.
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