What is preferred equity primarily characterized by?

Preferred equity is primarily characterized by its ability to pay a fixed income, similar to how bonds operate. This class of equity typically offers shareholders a set dividend that is paid out before any dividends are distributed to common shareholders. This feature provides a predictable income stream, making preferred equity an attractive investment for those seeking stability and regular income.

Unlike common equity, preferred equity generally does not come with voting rights, which is why the option regarding voting rights is not applicable. Additionally, preferred equity does not exhibit high volatility; rather, it tends to be less volatile than common equity due to its fixed-income nature. Finally, while preferred equity may be influenced by market conditions to some extent, it does not fluctuate as significantly as common stocks, further distinguishing it from those characteristics.