SIE Exam Practice Question 535

Question: 535

Which of the following is a type of preferred stock that gives the investor the right to receive dividends equal to the normally specified rate, as well as an additional dividend based on a specific predetermined condition?

Correct Answer: D

Explanation:

Participating preferred stock gives the investor the right to receive dividends equal to the normally specified rate, as well as an additional dividend based on a specific predetermined condition.

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