Drag and drop the words to complete the exhibit no limit on size of dividends Ty

Question

Drag and drop the words to complete the exhibit

no limit on size of dividends Typically have most voting rights Participa ting dividends accumulate Common stock Receive corporate assets first if company dissolves Paid dividends share in remaining proceeds Typical Typical advantages of classes of stock Preferred Stock Greater profit potential because first Cumulative preferred stock until paid in full preferred stock: Paid first if company dissolves (receive whatever they paid for stock plus accrued AND with common shareholders

Explanation / Answer

Two types of stock:

1. Preferred stock

Paid dividends first. Cumulative preferred stock dividends accumulate until paid in full.

b. Participating

Receives Corporate assets first if Company dissolves Preferred stock:

Paid first if Company dissolves

AND

Share in remaining proceeds with common stakeholders

2. Common stock:

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