The Law Dictionary

Your Free Online Legal Dictionary • Featuring Black’s Law Dictionary, 2nd Ed.

CUMULATIVE PREFERRED STOCK Definition & Legal Meaning

Definition & Citations:

PREFERRED STOCK that includes a feature allowing any foregone or suspended DIVIDEND payments to automatically accumulate. When the company restarts its program, cumulative preferred stock investors are entitled to receive all accumulated dividends before dividends can be paid to COMMON STOCK or NONinvestors.

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