Preferred Stock Features Protective provisions are common Convertibility: many preferreds are convertible into common shares Adjustable rate preferreds have dividends tied to interest rates Participation: some(very few) preferreds have dividends tied to the firms earnings• Protective provisions are common. • Convertibility: many preferreds are convertible into common shares. • Adjustable rate preferreds have dividends tied to interest rates. • Participation: some (very few) preferreds have dividends tied to the firm’s earnings. Preferred Stock Features