Preferred stock that is given a right to share with the common stock in dividends in excess of a stated preferred dividend rate is called:

Question

Quizplus · Accepted Answer

Participating preferred stock is given the right to share in dividends in excess of a stated preferred dividend rate along with the common stock. Nonparticipating preferred stock only receives the stated preferred dividend rate. Cumulative preferred stock accrues dividends if they are not paid in a given period and noncumulative preferred stock does not.

Preferred Stock That Is Given a Right to Share with the Common