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Basic Question 4 of 4
Which preferred shares have lower risk?
B. Non-cumulative preferred shares
A. Cumulative preferred shares
B. Non-cumulative preferred shares
User Contributed Comments 1
| User | Comment |
|---|---|
| Antoinepo | Cumulative shares keeps unpaid dividends, where uncumulative shares just delete it for the period so it's riskier because higher risk of a lower yeild |
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Learning Outcome Statements
compare the risk and return characteristics of different types of equity securities
CFA® 2025 Level I Curriculum, Volume 3, Module 4.