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Sagot :
The ability to vote is not a privilege or right connected to preferred stock.
The share capital component known as preferred stock can have any two or more qualities that common stock does not, including traits common to both equity and debt instruments. It's frequently thought of as a hybrid instrument. Preferred stocks are junior to bonds in terms of claim compared to common stock, but they might take precedence over ordinary stock in the payment of dividends and upon liquidation. The terms of the preferred stock are set forth in the articles of association or articles of incorporation of the issuing company. Preferred stocks are rated by the same major credit rating companies that grade bonds. The ratings of preferred stocks are lower than those of bonds because preferred dividends do not carry the same guarantees as bond interest payments, and because preferred-stock holders' claims are not as fully protected as bondholders'.
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