Preferred Stock Features Firms may have multiple classes of preferreds, each with different features Priority: lower than debt, higher than common stock。 Cumulative feature: all past unpaid preferred stock dividends must be paid before any common stock dividends are declared• Firms may have multiple classes of preferreds, each with different features. • Priority: lower than debt, higher than common stock. • Cumulative feature: all past unpaid preferred stock dividends must be paid before any common stock dividends are declared. Preferred Stock Features