Which of the following is not a common feature of cumulative preferred stock?
A) Priority over common stock with regard to dilution of shares.
B) Priority over common stock with regard to earnings.
C) Priority over common stock with regard to dividend payment.
D) Priority over common stock with regard to assets.

Question

Quizplus · Accepted Answer

Cumulative preferred stock typically has priority over common stock in terms of earnings, dividend payments, and assets in the event of liquidation. However, it does not have priority over common stock with regard to dilution of shares, which refers to the reduction in existing shareholders' ownership percentages due to the issuance of new shares.

Which of the Following Is Not a Common Feature of Cumulative