The typical rights of preferred shares usually include:
A) the right to vote.
B) a preference to a predesignated amount of dividends, that is, a stated dollar amount per share or percent of par per share.
C) a preference over common shareholders and lenders in the distribution of assets in the event the corporation is dissolved.
D) the "preemptive right" to maintain one's percentage share of ownership when new shares are issued.

Question

Quizplus · Accepted Answer

Preferred shares typically include a preference to a predesignated amount of dividends, either as a stated dollar amount per share or a percent of par per share. This is one of the key features that distinguish preferred shares from common shares.

The Typical Rights of Preferred Shares Usually Include