Federal regulations make it impossible for rating agencies to ...

[Shelles]

Federal regulations make it impossible for rating agencies to drop a company's credit rating more
  than two notches at a time in order to prevent panic in bond markets.
 
  Indicate whether the statement is true or false

Question 2

How is preferred stock similar to bonds?
 
  A) Preferred stockholders receive a dividend payment (much like interest payments to
  bondholders) that is usually fixed.
  B) Dividend payments to preferred shareholders (much like bond interest payments to
  bondholders) are tax deductible.
  C) Investors can sue the firm if preferred dividend payments are not paid (much like
  bondholders can sue for non-payment of interest payments).
  D) Preferred stock is not like bonds in any way.

[anyusername12131]

Answer to Question 1

FALSE

Answer to Question 2

A