Question

Preferred stock has a feature that allows it to share with common shareholders in any dividends paid in excess of the percent or dollar amount stated on the preferred stock. This feature is called: multiple choice Participating Nonparticipating Sharing LeveragePreferred stock has a feature that allows it to share with common shareholders in any dividends paid in excess of the percent or dollar amount stated on the preferred stock. This feature is called: multiple choice Participating Nonparticipating Sharing Leverage

Answer 1

Participating

Step-by-step explanation:

Preferred stock has a feature that allows it to share with common shareholders in any dividends paid in excess of the percent or dollar amount stated on the preferred stock. This feature is called: PARTICIPATING PREFERRED STOCK

This is because Participatory preferred stock gives an extra profit assurance to stockholders. Typically, all preferred stocks have a fixed dividend rate, which is the main benefit.

However, in the event where the issuing company meets specific financial targets, holders of participating stocks will get more dividend payments above the normal fixed rate.