Match the terms to the definitions by selecting the letter of the term.Each term may be used more than once or not at all.
-Allows the holders of this stock to share in the distribution of dividends above the predetermined per share amount.
A)cumulative feature
B)stock dividend
C)retired stock
D)retained earnings
E)callable feature
F)convertible feature
G)outstanding shares
H)treasury stock
I)participating feature
J)additional paid-in capital

Question

Quizplus · Accepted Answer

The participating feature in stock allows its holders to share in the distribution of dividends above the predetermined per share amount, in addition to receiving their regular dividends. This feature is often found in preferred stock, giving holders the potential for higher dividend payments if the company performs well.

Match the Terms to the Definitions by Selecting the Letter