passed dividend

passed dividend definition - business

passed dividend

A regular dividend that is omitted by a firm's board of directors. Passed dividends on most issues of preferred stock, but not on common stock, eventually must be made up. Also called omitted dividend, unpaid dividend. See also dividends in arrears.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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