Question

Which type of stock pays a fixed dividend, receives first priority in dividend payment, and maintains the right to a dividend payment, even if that payment is deferred

Answer 1

Answer:

Cumulative preferred

Explanation:

Cumulative preferred stock pays a fixed dividend, receives first priority in dividend payment, and maintains the right to a dividend payment, even if that payment is deferred.

This means that in cumulative preferred stock, If the past dividends was excluded for any reason, they should be paid to the preferred stockholders instead of the common shareholders.