Cumulative
Cumulative is a protective feature on preferred stock that requires preferred dividends previously not paid to be paid before any common dividends can be paid.
Definitions
According to Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition),
- Cumulative. A protective feature on preferred stock that requires preferred dividends previously not paid to be paid before any common dividends can be paid.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
