Characteristics of Preferred Shares

Very Easy Equity Markets And Instruments Preferred Shares

Preferred shares are a type of equity security that typically provides a fixed dividend and has preference over common shares in the event of a liquidation.

Which of the following characteristics is most commonly associated with preferred shares?

Preferred shares have voting rights in the company.

Preferred shares usually pay fixed dividends.

Preferred shares are always redeemable at the issuer's option.

Hint

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