Participating Preferred Stock Will

question 50

Multiple Choice

Participating preferred stock will:

• A) share with common stock in excess earnings after preferred payments and specified payments to common stock.
• B) accumulate dividends that will be paid later.
• C) participate in earnings only to the extent that all other classes do.
• D) participate in earnings to the same extent as common stock.

---

Definitions:

Thomas Jefferson

A Founding Father of America, the main writer of the Declaration of Independence in 1776, and served as the third President of the United States from 1801 to 1809.

Indians

A term historically used to refer to Native American peoples but is considered outdated and incorrect.

Militias

Armed groups often composed of non-professional soldiers and civilians organized to perform military functions in emergency situations.

Foreclosures

The legal process by which a lender takes control of a property, evicts the homeowner, and sells the home after the homeowner fails to make full principal and interest payments on the mortgage.