Canadian Securities Course (CSC) Practice Exam · Question
An investor owns shares that provide a fixed dividend payment and typically do not carry voting rights. What type of equity security is this?
Preferred shares entitle the holder to a fixed dividend and usually do not come with voting rights, possessing preference over common shares in dividend payment
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Question: An investor owns shares that provide a fixed dividend payment and typically do not carry voting rights. What type of equity security is this?
Answer options: ✅ Preferred shares
- Common shares
- Warrants
- Rights
Correct answer: Preferred shares
Explanation: Preferred shares entitle the holder to a fixed dividend and usually do not come with voting rights, possessing preference over common shares in dividend payments and asset distribution upon liquidation.
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