Which of the following shareholder rights is most commonly enhanced in an issue of preferred stock?

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Preferred stock often comes with a preference for receiving cash dividends before common stockholders receive any dividends. This is known as a priority dividend, and it is the most common shareholder right enhanced by preferred stock. Preferred stockholders may not have the right to vote for the board of directors or on major corporate issues, and they may not be able to maintain their proportional interest in the corporation. Transferring dividend revenue to common shareholders is not a common feature of preferred stock.

Which of the Following Shareholder Rights Is Most Commonly Enhanced