When market rates are less than the dividend rate, preferred shares will trade at:

Name: When market rates are less than the dividend rate, preferred shares will trade at:
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When market rates are less than the dividend rate on preferred shares, the shares become more attractive to investors because they offer a higher return compared to the prevailing market rates. As a result, the demand for these shares increases, leading them to trade at a premium above their par value.

When Market Rates Are Less Than the Dividend Rate, Preferred