Which of the following regarding preferred stock is true?

Question

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Preferred stock is a type of stock that provides a fixed dividend payment and is higher in priority than common stock in terms of distributions. The price of preferred stock moves inversely to changes in the required rate of return. If the required rate of return increases, the price decreases because investors require a higher return to justify their investment. Conversely, if the required rate of return decreases, the price increases because investors are willing to accept a lower return for the security. The price of preferred stock can deviate from its par value depending on market conditions and factors that affect the company's dividend payments.

Which of the Following Regarding Preferred Stock Is True