What Rights Do Preferred Shareholders Have?

What Rights Do Preferred Shareholders Have?
★ Key Takeaways

Preferred Stock Usually Carries No Voting Rights, but May Carry a Dividend and May Have Priority over Common Stock in the Payment of Dividends and Upon Liquidation. Preferred Stock Has a Claim on Liquidation Proceeds of a Stock Corporation Equal to Its Par (Or Liquidation) Value, Unless Otherwise Negotiated.

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Direct Answer • Key Takeaway

Preferred Stock Usually Carries No Voting Rights, but May Carry a Dividend and May Have Priority over Common Stock in the Payment of Dividends and Upon Liquidation. Preferred Stock Has a Claim on Liquidation Proceeds of a Stock Corporation Equal to Its Par (Or Liquidation) Value, Unless Otherwise Negotiated.

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James H. Sterling
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James H. Sterling

James Sterling reports on renewable energy developments, climate policy, ecological conservation, and green tech innovations around the globe.