Which of the following statements regarding preferred stock is NOT true?
A) Unlike debt, preferred stock has no set maturity date.
B) The dividend is fixed except in the case of adjustable preferred.
C) Because there is no set maturity value or redemption date, the holder of preferred stock has to sell his shares in the open market to close out his position.
D) Voting rights of preferred shareholders take precedence over those of common shareholders.
Answer: D) Voting rights of preferred shareholders take precedence over those of common shareholders.