cumulative preferred stock

cumulative preferred stock definition - finance
Preferred stock with a fixed dividend that is owed each year. If a companyÂ’s board declines to declare a dividend, then the per share dividend accumulates each year and the whole amount must be paid before any dividends on common stock can be paid. Dividends not paid in the year they are due are called dividends in arrears.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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