Which characteristic is true about preferred stock?

Preferred stock is a unique type of equity security that typically does not grant voting rights to its holders. This means that preferred shareholders generally cannot participate in corporate governance decisions, such as electing the board of directors or voting on major corporate actions. Instead, they have a priority claim on dividends and assets in the event of liquidation, which differentiates them from common shareholders who usually have those voting rights.

While preferred stock is often associated with dividend payments, these dividends are not guaranteed; companies may choose to skip or suspend dividend payments in financial difficulties. The statement regarding a fixed redemption value relates more to certain types of preferred stock, like callable preferred shares, but is not universally true for all preferred stock.

This understanding of preferred stock helps clarify its role in the capital structure of a company and the rights attributed to shareholders, particularly the absence of voting rights in this case.