The type of stock in which stockholders are assured that omitted dividends will be paid to them before other dividends are paid is ____________ stock.
A)cumulative preferred
B)convertible preferred
C)participating preferred
D)common
E)callable preferred

Question

Quizplus · Accepted Answer

Cumulative preferred stock ensures that any missed dividend payments will accumulate and must be paid to the shareholders before any other dividends are paid, making it the best choice for this description.

The Type of Stock in Which Stockholders Are Assured That