Which of the following statements best describes preferred shares?
A) Preferred shares carry voting rights.
B) Preferred shares produce a fixed-amount dividend.
C) Preferred shareholders receive dividends after common shareholders.
D) Preferred shares can be owned only by upper management.

Question

Quizplus · Accepted Answer

Preferred shares typically produce a fixed-amount dividend, distinguishing them from common shares, which have variable dividends. Preferred shareholders usually receive dividends before common shareholders, do not generally carry voting rights, and can be owned by any investor, not just upper management.

Which of the Following Statements Best Describes Preferred Shares