Which term refers to a preferred stock type that offers investors preference in dividend payments in case of corporate liquidation?

The term that accurately describes a type of preferred stock which provides investors with preference in dividend payments during corporate liquidation is cumulative preferred stock. This type of stock ensures that if dividends are missed during any period, they must be paid before any dividends can be distributed to common shareholders. In the context of liquidation, cumulative preferred stockholders are prioritized over common shareholders when it comes to recovering their investment.

In contrast, while convertible preferred stock allows holders to convert their shares into a certain number of common shares under specified conditions, it does not specifically address dividend preference during liquidation scenarios. Participating preferred stock provides shareholders with the right to participate in additional earnings beyond the stated dividend but does not inherently offer the same liquidation priority as cumulative preferred stock.

Therefore, cumulative preferred stock best encapsulates the scenario of prioritization in dividend payments during corporate liquidation.