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Basic Question 5 of 6

Which feature of preferred shares appeals to investors who want to participate in the stock market without feeling as though they are taking wild risks?

A. Cumulative
B. Participating
C. Convertible
Check Answer Previous Q Next Q Print

User Contributed Comments 3

User Comment
johntan1979 Participating is extra dividends if the company hit some financial targets.
CFAToad Trick question. Good catch John.
khalifa92 ahhh
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I passed! I did not get a chance to tell you before the exam - but your site was excellent. I will definitely take it next year for Level II.
Tamara Schultz

Tamara Schultz

Learning Outcome Statements

describe differences in voting rights and other ownership characteristics among different equity classes

CFA® 2024 Level I Curriculum, Volume 3, Module 4.