Which of the following statements correctly describe characteristics of preference shares?

Group of answer choices

1.Preference shares are often called hybrid securities because they can display characteristics of both debt and equity.

2.A participating preference share participates in the interest payments paid to debtholders.

3.The required return on preference equity that is non-participating is expected to be greater than the required return from ordinary equity as the preference shareholders dont get the opportunity to benefit from the profits generated by the company.

4.None of the other statements are correct.