If you own stock that gets first preference to dividends in arrears, what class of stock do you own?

Question

Preferred Stock

Common Stock-Specialty Class

Treasury Stock

Cumulative Preferred

Answer 1

Common stocks are paid on a regular basis.

Preferred stocks are paid to investors as fixed dividend. This stock pays dividend to preferred shareholders before common shareholders.

Cumulative preferred stock is a type of preferred stock that stipulates payment of dividend owed in past to cumulative shareholders first.

Treasury stocks are stocks owned by issuing company. Dividends are not paid on treasury stocks. The issuing companies by the shares to reduce number of shares that is outstanding in the open market.