Explanation:

A non-participating preferred share, also known as non-participating preferred stock, is one in which a dividend is paid, usually at a fixed rate, and not determined by a company’s earnings. Holders of this type of share do not participate in the distribution of profits to equity investors. A non-participating preferred share has a feature that limits the dividends that can be issued annually. This top limit is generally written on the face of the stock certificate either as an amount or as a percentage of the par value (the stock value stated in the corporate charter).