Which of the following provisions is unique to preferred stockholders and usually NOT available to common stockholders?
A) Cumulative dividends feature
B) Voting rights
C) Fixed dividend
D) Both A and C

Question

Quizplus · Accepted Answer

Cumulative dividends are a unique feature of preferred stockholders, which allows them to receive their unpaid dividends in subsequent years, while common stockholders do not have this feature. Fixed dividend is also unique to preferred stockholders and is not available to common stockholders. However, voting rights may or may not be available to preferred stockholders, depending on the terms and conditions of the stock issue.

Which of the Following Provisions Is Unique to Preferred Stockholders