Final answer:
Preferred stock typically does not carry voting rights, which is the characteristic not associated with it. Preferred shareholders usually receive fixed dividends declared by the board, and dividends are not guaranteed.
Step-by-step explanation:
The characteristic that is NOT a feature of preferred stock is 'It carries voting rights'. Preferred stock typically has features such as fixed dividends and non-guaranteed dividends, which are declared by the board of directors. However, unlike common stock, preferred stockholders usually do not have voting rights. Firms issue stock to increase visibility in financial markets and gain financial capital for expansion without the obligation of repaying the capital.
When a company is profitable, the board of directors decides whether to pay out dividends to shareholders or reinvest the profits into the company. Yet issuing stock is costly and complex, involving significant legal expertise and adherence to regulatory requirements by agencies like the Securities and Exchange Commission (SEC).