A form of equity which receives preferential treatment in the payment of dividends is called _____ stock.

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Preferred stock is a form of equity that receives preferential treatment in the payment of dividends. Preferred shareholders are often paid their dividends before common shareholders and may also have priority in receiving assets in the event of bankruptcy or liquidation. Cumulative preferred stock may also receive preferential treatment in the payment of dividends, as any missed dividends are generally required to be paid before common dividends. Dual-class and deferred stock are not necessarily preferred stock and do not always receive preferential treatment in the payment of dividends. Common stock does not receive preferential treatment in the payment of dividends.

A Form of Equity Which Receives Preferential Treatment in the Payment