Preferred stock:
A) has voting rights.
B) often has a cumulative dividend.
C) always has a fixed dividend.
D) is considered a debt obligation.
E) dividends are paid at the discretion of the board of directors.

Question

Quizplus · Accepted Answer

Preferred stock often has a cumulative dividend, meaning if the company skips a dividend payment, it must later make up the missed payments before paying any dividends to common stockholders. None of the other choices apply to preferred stock.

Preferred Stock