A preferred share on which the right to receive dividends is lost for any year that the dividends are not declared is a:

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Quizplus · Accepted Answer

The preferred share described in the question is a noncumulative preferred share. This type of share does not accumulate unpaid dividends from previous years and therefore, if dividends are not declared for a particular year, the right to receive them is lost. Participating preferred shares give the shareholder the right to receive additional dividends in addition to the fixed dividends. Callable preferred shares can be bought back by the issuer at a predetermined price. Cumulative preferred shares accumulate unpaid dividends and must be paid out before common shareholders can receive dividends. Convertible preferred shares can be converted into common shares at a predetermined ratio.

A Preferred Share on Which the Right to Receive Dividends