Participating Preferred Stock Has a Feature That Allows Its Holders

question 17

True/False

Participating preferred stock has a feature that allows its holders to share with common shareholders in any dividends paid in excess of the percent or dollar amount stated on the preferred stock.

---

Definitions:

Itemized Deductions

Specific expenses that taxpayers can report in order to decrease their taxable income, as opposed to taking a standard deduction.

Mortgage Interest

The interest paid on a mortgage loan, which may be deductible on U.S. federal income tax, reducing taxable income.

Prescription Medicines

Medications that can only be obtained with a doctor's written order and are eligible for certain tax exemptions when used for medical care.

Health Insurance Premiums

The amount paid, often on a monthly basis, for health insurance coverage.