Cumulative preferred stock
Cumulative preferred stock is stock that entitles its holders to any undeclared dividends that have accumulated before common stockholders receive their dividends.
Definitions
According to College Accounting: A Practical Approach by Slater (13th edition),
- Cumulative preferred stock. Stock that entitles its holders to any undeclared dividends that have accumulated before common stockholders receive their dividends.
Related concepts
- Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.
