If preferred stock has the right to receive dividends in excess of its stated dividend rate it is referred to as

Question

Quizplus · Accepted Answer

If preferred stock has the right to receive dividends in excess of its stated dividend rate, it is known as participating preferred stock. This means that in addition to receiving its fixed dividend rate, it has the right to participate in any dividend distribution above and beyond the stated rate.

If Preferred Stock Has the Right to Receive Dividends in Excess