Which of the following statements is correct?

Question

Quizplus · Accepted Answer

Preferred stock may include a provision allowing the corporation to repurchase the shares at a specific price, referred to as a call provision. This provides flexibility to the issuing corporation in the event of changes in the financial environment. Choices A, B, and D are incorrect. Preferred stockholders typically do not have the right to vote unless specified in the stock’s provisions. Dividends may or may not be paid out to stockholders, and preferred shareholders are typically paid before common shareholders in a liquidation event.

Which of the Following Statements Is Correct