Preferred stock on which the right to receive dividends is forfeited for any year that the dividends are not declared is referred to as:

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Noncumulative preferred stock is stock on which the right to receive dividends is forfeited for any year that the dividends are not declared. Cumulative preferred stock, on the other hand, allows the accumulated unpaid dividends to accrue and be paid at a later time, while participating preferred stock has the right to receive additional dividends on top of the fixed dividend rate specified. Callable preferred stock can be redeemed by the issuer at a predetermined price, and convertible preferred stock can be converted into common stock at the option of the holder.

Preferred Stock on Which the Right to Receive Dividends Is