Participating preferred stock may receive an extra dividend in a particularly good year when earnings are above a stated level.

Name: Participating preferred stock may receive an extra dividend in a particularly good year when earnings are above a stated level.
Brand: Quizplus
Rating: 4.9 (39 reviews)

Question

Quizplus · Accepted Answer

Participating preferred stock may have the right to receive an extra dividend in addition to its fixed rate dividend if the company's earnings exceed a certain level. This extra dividend is called participating dividend.

Participating Preferred Stock May Receive an Extra Dividend in a Particularly