Preferred shareholders share with common shareholders in any "extra" dividends when the preferred stock is
A) cumulative.
B) callable.
C) participating.
D) convertible.

Question

Quizplus · Accepted Answer

Participating preferred stock allows shareholders to receive additional dividends beyond the fixed preferential amount if the company achieves certain financial goals. This means they can share in the "extra" dividends with common shareholders under specific conditions.

Preferred Shareholders Share with Common Shareholders in Any "Extra" Dividends