Explain these preferred stock characteristics a Accumulation of dividends b Participation in excess of stated dividend rate c Convertibility into common stock d Callability by the corporation e Preference in liquidation ...

a With the cumulative feature if a corporation fails to declare the usual dividend on the cumulati ...

Explain these preferred stock characteristics: a. Accumulation of dividends b. Participation in excess of stated dividend rate

Question:

Explain these preferred stock characteristics:
a. Accumulation of dividends
b. Participation in excess of stated rate
c. Convertibility into common stock
d. Callability by the corporation
e. Preference in liquidation

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...