Explain each of the following preferred stock dividend preferences: (1) current dividend preference, (2) cumulative dividend preference,

Question:

Explain each of the following preferred stock preferences: (1) current preference, (2) cumulative preference, and (3) participating preference.
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...