Hi ELMIRA FISHERMAN. If I may...

Preferred shares such as the ones we see here are generally used as a financial tool, similarly to bonds or notes. They usually have a fixed dividend rate attached to them (similar to an interest rate for a bond or a promissory note). As per the law, a BoD can declare or pay dividends only if the company shows accrued profits (a dividend cannot be declared out of capital or of deficit). Being risky, they usually bear a right to be repaid by preference upon liquidation (winding-up) of the company, ie before the common shares (or other shares bearing a junior rank). The presence of Preferred Shares is very common, if not standard in every corporation. They are normally non-voting, but may be or become thus occasionnally. GLTY.