What provisions are available to protect a preferred stockholder?

What will be an ideal response?

Most preferred stocks carry a cumulative feature that requires all past, unpaid preferred stock dividends to be paid
before any common stock dividends are declared. In addition to the cumulative feature, protective provisions are
common to preferred stock. These protective provisions generally allow for voting rights in the event of nonpayment
of dividends, or they restrict the payment of common stock dividends if the preferred stock payments are not met or if
the firm is in financial difficulty. Much of the preferred stock that is issued today is convertible preferred stock; that is,
at the discretion of the holder, the stock can be converted into a predetermined number of shares of common stock. A
sinking-fund provision requires the firm periodically to set aside an amount of money for the retirement of its
preferred stock. This money is then used to purchase the preferred stock in the open market or to call the stock,
whichever method is cheaper.