Preferred stock can have which of the following characteristics _______________? It can be:

Question

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Preferred stock can have all three of these characteristics - cumulative, non-cumulative, and convertible. Cumulative preferred stock means that if a company misses a dividend payment, it accumulates and must be paid in the future before common stockholders can receive any dividends. Non-cumulative preferred stock does not accumulate missed dividend payments. Convertible preferred stock can be converted into a certain number of common shares at a predetermined price.

Preferred Stock Can Have Which of the Following Characteristics _______________