Which preferred stock type does not accumulate unpaid dividends?

Straight preferred stock is characterized by its lack of accumulation of unpaid dividends. Unlike cumulative preferred stock, which ensures that any missed dividend payments must be paid out to shareholders before any dividends are distributed to common stockholders, straight preferred stock does not have this feature. If the company is unable to pay dividends during a particular period, those dividends are not owed in the future; they effectively disappear.

This feature makes straight preferred stock less favorable to investors seeking guaranteed payments, as they do not have a right to recoup missed dividends. On the other hand, cumulative preferred stock provides security in the form of guaranteed future payments, while convertible preferred stock offers the option to convert to common shares, and participating preferred stock may pay additional dividends based on company performance. Each of these features adds different levels of risk and potential reward that are not present in straight preferred stock.