With respect to preferred shares,select the statement that is correct.
A)They must have a par value.
B)They are never issued without voting privileges.
C)They cannot exist unless there also are common shares.
D)They always provide for a fixed payment to be made to the shareholders even for years when no dividends have been declared.

Question

Quizplus · Accepted Answer

Preferred shares can exist independently without common shares. However, they do not have to be issued without voting privileges (they can have voting rights) and do not necessarily have a par value. Option D is also incorrect as preferred shares may or may not have a fixed dividend payment, depending on the terms of the specific issue.

With Respect to Preferred Shares,select the Statement That Is Correct