Series 6 - Investment Company And Variable Contracts Products Representative Exam

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This security offers investors the right to receive dividends of the fixed preferred dividend and also an additional dividend:

Noncumulative preferred
A
Participating preferred
B
Cumulative preferred
C
Convertible preferred
D
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Explanations

In addition to fixed dividends, participating preferred stock offers owners preferred dividends plus an additional dividend. Participating Preferred shareholders may also receive additional consideration in the event of a corporate liquidation.

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