Preferred stock that entitles its holders to any undeclared dividends accumulated before common stockholders receive dividends is:

Question

Quizplus · Accepted Answer

Cumulative preferred stock ensures that its holders are entitled to dividends that may have been missed or undeclared in the past before any dividends are distributed to common stockholders. This feature accumulates unpaid dividends, which must be paid out before common stockholders can receive any dividends.

Preferred Stock That Entitles Its Holders to Any Undeclared Dividends