单选题

The advantages to an investor owning convertible preference shares of a company most likely include:

A、 less price volatility than the underlying common shares.
B、 preference dividends that are fixed contractual obligations of the company.
C、 an opportunity to receive additional dividends if the company's profits exceed a prespecified level.

【正确答案】 A

【答案解析】

Compare and contrast the risk and return characteristics of various types of equity securities.Convertible preference shares tend to exhibit less price volatility than the underlying common shares because the dividend payments are known and more stable.