Preferred stock that is given a right to share with the common stock in dividends in excess of a stated dividend rate is said to be

Question

Quizplus · Accepted Answer

Participating preferred stock is given the right to receive dividends in excess of a stated dividend rate along with the common stock. Nonparticipating preferred stock only receives the stated dividend rate, while cumulative preferred stock allows for unpaid dividends to accumulate and be paid in the future, and noncumulative preferred stock does not allow for unpaid dividends to accumulate.

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