Characteristics of Preferred Shares

Easy Equity Markets And Instruments Preferred Shares

Preferred shares, also known as preference shares, are a type of equity security that grants shareholders a preferential claim on the company's assets and earnings relative to common shareholders. They usually pay fixed dividends and have characteristics that can resemble both debt and equity.

Which of the following statements accurately describes a characteristic of preferred shares?

Preferred shareholders have voting rights in company matters.

Preferred shares typically have a fixed dividend rate.

Preferred shares are considered riskier than common shares.

Hint

Submitted7.9K

Correct5.0K

% Correct63%