Type of preferred stock whose dividend payments are never paid to stock holders and are not considered in in arrears is classified as

A. non-participating preferred stock

B. participating preferred stock

C. non-cumulative preferred stock

D. cumulative preferred stock

Answer: Option C

Solution(By Examveda Team)

Type of preferred stock whose dividend payments are never paid to stock holders and are not considered in in arrears is classified as non-cumulative preferred stock. Noncumulative preferred stock is a type of preferred stock that allows the issuing company to skip dividends and which then cancels the company's obligation to eventually pay those dividends.