Canadian Securities Course (CSC) Level 1 Practice Exam

What is a foreign-pay preferred?

1. Shares issued in foreign markets

2. Dividends paid in foreign currency

3. Preferred shares issued by international companies

4. Preferred shares with dividends in foreign funds

The correct answer is: Preferred shares with dividends in foreign funds

A foreign-pay preferred refers to preferred shares that pay dividends in a currency other than the domestic currency of the holder. This means that the dividends are paid in foreign funds, making option D the correct answer. Options A, B, and C are incorrect as they do not accurately describe what a foreign-pay preferred is.