Final answer:
Preferred stock whose holders share in any extra dividends distributed by the corporation after the regular dividend has been paid to holders of preferred stock and a stipulated dividend has been paid to holders of common stock.
Step-by-step explanation:
The subject being described in this question is preferred stock.
Preferred stock is a type of stock that gives its holders certain preferences or privileges over common stock, such as priority in receiving dividends. In this case, the preferred stock being discussed is the one where the holders share in any extra dividends distributed by the corporation after the regular dividend has been paid to holders of preferred stock and a stipulated dividend has been paid to holders of common stock.
For example, let's say a company declares a dividend of $1 per share for its preferred stock. After paying this dividend to all preferred stockholders, any additional profits available for distribution as dividends are shared among the holders of this preferred stock. This allows them to benefit from extra dividends if the company performs well.