Many preferred stocks extend voting rights to preferred shareholders if the preferred dividend has been omitted for some specified period, for example, 4 quarters.

Question

Quizplus · Accepted Answer

This statement is true. Some preferred stocks have a provision that allows preferred shareholders to have voting rights if the preferred dividend has been omitted for a certain number of quarters or periods, as a form of compensation for the loss of dividends.

Many Preferred Stocks Extend Voting Rights to Preferred Shareholders If