Which of the following statements does not correctly describe preferred stock?
A)Preferred shareholders have a preference with respect to dividend payments.
B)Preferred shareholders have a preference with respect to assets in the event of dissolution.
C)Preferred shareholders have voting rights on a per share basis.
D)Preferred stock typically has a fixed dividend rate.

Question

Quizplus · Accepted Answer

Preferred shareholders typically do not have voting rights or have limited voting rights. They may only have the right to vote on certain matters that directly affect their dividends or their rights as preferred shareholders. Therefore, statement C is incorrect.

Which of the Following Statements Does Not Correctly Describe Preferred