Dividend Rights of Preferred Shareholders

The video tutorial explains the concept of dividends, focusing on how corporations distribute excess capital to shareholders. It details the rights of preferred shareholders, including guaranteed dividends and the distinction between cumulative and non-cumulative dividends. Additionally, it covers participation rights, allowing preferred shareholders to partake in dividends declared for common shareholders.

What is a dividend and how is it declared by a company?

How does the board of directors influence the issuance of dividends?

Explain the difference between cumulative and non-cumulative dividend rights.

What happens to a preferred shareholder's right to dividends if they are not declared?

What are participation rights in relation to dividends for preferred shareholders?