_____ stock requires a corporation to pay all current and missed preferred dividends before paying any common stock dividends.
A)Convertible preferred
B)Cumulative preferred
C)Couched convertible
D)Prospectus launched

Question

Quizplus · Accepted Answer

Cumulative preferred stock mandates that a corporation must pay all dividends that are due, including any that have been missed, before common stock dividends can be distributed. This feature protects the interests of preferred shareholders by ensuring they receive their dividends before common shareholders.

_____ Stock Requires a Corporation to Pay All Current and Missed