Preferred stock:
A)represents the residual ownership of a corporation.
B)is generally issued only by new, small firms.
C)has a fixed maturity date similar to a bond.
D)dividends can be skipped at the discretion of the company president.
E)may or may not be cumulative.

Question

Quizplus · Accepted Answer

Preferred stock may have cumulative dividends, meaning missed dividends must be paid before common dividends, or non-cumulative, where missed dividends do not accumulate.

Preferred Stock