Characteristics of preference shares
All of the following are characteristics of preference shares except:
A. They are either callable or puttable
B. They generally do not have voting rights
C. They do not share in the operating performance of the company
I am very clear with option A and B, however; I am confused with option C. Because I think participating preference shares entitle shareholders to receive an additional dividend if the company’s profits exceed a predetermined level, which is related to operating performance??
Thanks in advance.
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