Preferred stock with a feature allowing preferred stockholders to share with common shareholders in any dividends in excess of the percent or dollar amount stated on the preferred stock is called:

Question

Quizplus · Accepted Answer

Participating preferred stock allows preferred shareholders to receive their stated dividend first and also share in any additional dividends beyond that amount with common shareholders. This feature gives participating preferred shareholders a greater potential for higher returns on their investment compared to other types of preferred stock.

Preferred Stock with a Feature Allowing Preferred Stockholders to Share