Preferred stock for which unpaid dividends must be paid before dividends can be paid to common stockholders is referred to as

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The term "cumulative" is used to describe preferred stock for which unpaid dividends must be paid before dividends can be paid to common stockholders. Callable refers to the ability of a company to redeem or "call in" its preferred stock at a certain price, while convertible refers to the ability of preferred stock to be converted into common stock. Participating preferred stock allows shareholders to receive an additional dividend above and beyond the stated dividend rate if the company has a particularly profitable year.

Preferred Stock for Which Unpaid Dividends Must Be Paid Before