Series 6 - Investment Company And Variable Contracts Products Representative Exam

Preview Mode

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

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.