Question

What is the characteristic of non-voting stock that provides a stable dividend?

1) They provide a fixed income until they're sold by the investor
2) They have voting rights in the company
3) They are always preferred over voting stock
4) They do not receive any dividends

Answer 1

The characteristic of non-voting stock that provides a stable dividend is that they provide a fixed income until they're sold by the investor. Option 1,

Step-by-step explanation:

The characteristic of non-voting stock that provides a stable dividend is that they provide a fixed income until they're sold by the investor.

Non-voting stock, also known as preferred stock, is a type of stock that does not have voting rights in the company. However, it does have the advantage of receiving a stable dividend. This means that non-voting stockholders are entitled to receive a fixed amount of income from the company's profits.

Unlike common stockholders, who may or may not receive dividends depending on the company's performance, non-voting stockholders are guaranteed a dividend payment. This gives them a more stable income stream and makes non-voting stock an attractive investment option for those seeking consistent returns. Option 1.