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Preferred stock has some distinctly different characteristics from common stock. Which of the characteristics below is not related to preferred stock?

a. Fixed dividend rate
b. Voting rights
c. Priority in liquidation
d. Convertibility into common stock

User MrOBrian
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1 Answer

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Final answer:

Preferred stock does not provide voting rights, whereas it does offer a fixed dividend rate, priority in liquidation, and may be convertible into common stock.

Step-by-step explanation:

The characteristic that is not related to preferred stock is voting rights. Preferred stock typically has a fixed dividend rate, priority in a company's liquidation, and may have convertibility into common stock. However, one of the main distinctions of preferred stock when compared to common stock is that preferred shareholders usually do not have voting rights. This is reserved for common shareholders, who have a say in corporate decisions such as electing the board of directors.

The characteristic that is not related to preferred stock is b. Voting rights. Preferred stock typically does not have voting rights, whereas common stock does. The other three characteristics listed - fixed dividend rate, priority in liquidation, and convertibility into common stock - are all commonly associated with preferred stock.

User Ben Riga
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