cumulative preferred
Học thuậtThân thiện
A company's cumulative preferred stock ensures that any missed dividends are paid later.
Definition
- Noun:
- Cumulative preferred stock: A type of preferred stock where any omitted or unpaid dividends accumulate and must be paid out to the holders of this stock before any dividends can be paid to common stockholders.
Usage
- Noun:
- The company issued cumulative preferred shares to attract investors seeking more secure dividend payments.
- Holders of the cumulative preferred stock are entitled to receive all accumulated unpaid dividends from prior years.
Advanced Usage
- "Cumulative preferred stock": The full term for this financial instrument.
- Investing in cumulative preferred stock can provide a more predictable income stream than common stock.
- "Cumulative preferred shares": Another common way to refer to this type of stock.
- The corporation's charter specifies the rights attached to its cumulative preferred shares.
Variants and Related Words
- Cumulative preference shares (n): A term used primarily in British English, synonymous with cumulative preferred stock.
- The company's cumulative preference shares have a fixed dividend rate.
- Non-cumulative preferred stock (n): A contrasting type of preferred stock where omitted dividends do not accumulate.
- The investor chose non-cumulative preferred stock for its different risk profile.
Synonyms
- Accumulating preferred stock: A less common synonym emphasizing the dividend accumulation feature.
- Cumulative preference stock: A formal synonym.
Related Phrases
- Arrears of dividends: The accumulated, unpaid dividends owed to cumulative preferred stockholders.
- The company must clear the arrears of dividends on its cumulative preferred stock before resuming common dividend payments.
- Dividend accumulation: The process specific to this type of security.
- The dividend accumulation feature protects investors during periods of low corporate profits.
A company's cumulative preferred stock ensures that any missed dividends are paid later.
Noun
- preferred stock whose dividends if omitted accumulate until paid out