Which of the following is typically a characteristic of preferred shares?

Question: Which of the following is typically a characteristic of preferred shares?

Answer options:

• Voting rights similar to common shares ✅ Fixed dividend payments
• Higher potential for capital appreciation compared to common shares
• Last in line to receive assets in case of company liquidation

Correct answer: Fixed dividend payments

Explanation: Preferred shares typically offer fixed dividend payments, which is a key characteristic distinguishing them from common shares. They usually do not have voting rights and have a preferred claim on assets over common shares in liquidation.