What is a distinguishing characteristic attributable to preferred shares?
A) They include a right to vote.
B) They must state "nonvoting" on the share certificate itself.
C) They have a preferential right in the distribution of proceeds on dissolution.
D) They do not usually share in dividends.

Question

Quizplus · Accepted Answer

Preferred shares often have a preferential right in the distribution of proceeds upon the dissolution of a company, meaning they are paid out before common shareholders.

What Is a Distinguishing Characteristic Attributable to Preferred Shares