Each year, Arnold receives a stated amount of dividend from the earnings of the company he has stocks in. In a particular period, if the company skips the dividend, then Arnold will receive the accumulated amount, that is, the dividend of that period plus the amount of the dividend the company skipped in the previous period. Based on the information given in the scenario, Arnold is most likely a holder of:

Question

Quizplus · Accepted Answer

Preferred stockholders often receive dividends that accumulate if they are not paid in a given period, a feature known as "cumulative dividends."

Each Year, Arnold Receives a Stated Amount of Dividend from the Earnings