Most preferred stocks have the following characteristics, except:

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Most preferred stocks do not have voting rights, as they are considered equity securities but are not considered full ownership stakes in the company. This is a key difference between preferred and common stocks. Preferred stocks typically have higher dividends and priority over common stockholders in the distribution of dividends and assets in the event of liquidation. They may also be callable at the option of the corporation, meaning that the issuer can redeem them at a certain price after a specified date. In addition, many preferred stocks have cumulative dividends, meaning that if the company skips a dividend payment, the unpaid dividends accumulate and must be paid before any common stock dividend can be paid.

Most Preferred Stocks Have the Following Characteristics, Except