Most Preferred Stocks Have a Feature That Requires All Past

question 35

Multiple Choice

Most preferred stocks have a feature that requires all past unpaid preferred dividend payments be paid before any common stock dividends can be paid.What is the name of this feature?

• A) Participating
• B) Cumulative
• C) Provisional
• D) Convertible

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Definitions:

Psychopathology

The study of psychological disorders, their symptoms, etiology (causes), and treatment.

Diathesis-stress

A psychological theory that explains behavior as both a result of biological and genetic factors ("diathesis"), and life experiences ("stress").

Etiology

The study of the causes or origins of diseases or disorders.

Diathesis-stress Model

A psychological theory that attempts to explain a disorder, or its trajectory, as the result of an interaction between a predispositional vulnerability and stress caused by life experiences.