Which of the following statements does not correctly describe preferred stock?

A) Preferred shareholders have a preference with respect to dividend payments.
B) Preferred shareholders have a preference with respect to assets in the event of dissolution.
C) Preferred shareholders have voting rights on a per share basis.
D) Preferred stock typically has a fixed dividend rate.

Preferred Shareholders

Investors who own preferred shares of a company, which typically offer dividends before common stock and have priority in asset liquidation.

Voting Rights

The rights of shareholders to vote on corporate matters, typically exercised at annual meetings.

Fixed Dividend

A type of dividend payment on preferred stock that remains constant and does not fluctuate with the earnings of the company.