Most preferred stock
A) is participating.
B) has variable dividends.
C) allows voting.
D) has cumulative dividends.

Question

Quizplus · Accepted Answer

Most preferred stock has the feature of cumulative dividends, meaning if the company suspends dividend payments in one year, the unpaid dividends accrue and must be paid before any common stock dividend can be distributed. None of the other options are typically associated with preferred stock.

Most Preferred Stock