Canadian Securities Course (CSC) Practice Exam 2025 - Free CSC Practice Questions and Study Guide

A delayed floater preferred share is a type of preferred share that offers a fixed dividend for a specific duration of time. This means that the holder of this share is entitled to receive a stable, predetermined dividend amount for a set period of time. This can be attractive for investors who are seeking a steady income stream, as they can count on receiving a consistent dividend for a specific period of time.

Option A is incorrect because a delayed floater preferred share does not protect against interest rate increases. Interest rates can still fluctuate during the predetermined time period for the fixed dividend.

Option B is incorrect because a delayed floater preferred share does not pay no dividend until a future maturity date. It still pays a fixed dividend for a set duration.

Option C is incorrect because a delayed floater preferred share does not accumulate dividends from year to year until paid. It only provides a fixed dividend for a predetermined period of time.