The following are characteristics of preferred stock except:
I. pays fixed dividends
II. has cumulative feature
III. has voting rights
A) I only
B) I and II only
C) III only
D) II only

Question

Quizplus · Accepted Answer

Preferred stock typically does not have voting rights, making statement III incorrect. However, preferred stock does pay fixed dividends and may have a cumulative feature (meaning missed payments must be made up before common shareholders can receive dividends), making statements I and II correct.

The Following Are Characteristics of Preferred Stock Except