What does a "callable" preferred stock feature imply for the investor?

The "callable" preferred stock feature implies that the issuing company has the right to repurchase the stock at a predetermined price after a certain date. This means that if market conditions change or if the company wants to reduce its cost of capital, it can buy back these shares from the investors. This feature introduces a level of risk for investors because, should the stock be called away, they might miss out on potential higher dividend payments or gains if the stock's value appreciates beyond the call price.

The other choices do not accurately describe the characteristics of callable preferred stock. For example, conversion to common stock is a feature of convertible preferred stock, not callable preferred stock. Guaranteed dividends refer to the nature of preferred stock in general but do not pertain specifically to its callable feature or how callable stocks function. Regarding voting rights, preferred stock typically does not come with voting rights, and the callable feature does not confer additional voting rights to the investor.