Type of preferred stock in which dividend does not increase or decrease with increase or decrease in profit of firm is classified as

A. non-cumulative preferred stock

B. cumulative preferred stock

C. non-participating preferred stock

D. participating preferred stock

Answer: Option C

Solution(By Examveda Team)

Type of preferred stock in which dividend does not increase or decrease with increase or decrease in profit of firm is classified as non-participating preferred stock. Non-participating preferred stock is preferred stock that specifically limits the amount of dividends paid to its holders.