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Cumulative preference shares |
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Cumulative preference sharesWhen a company fails to pay a dividend, holders of cumulative preference shares are entitled to receive this missed payment when a dividend is next declared. This rule is cumulative and they are also entitled to the current dividend provided sufficient cash is available. These payments receive priority over the claims of ordinary shareholders.Similar MatchesCumulative preferred stockCumulative preferred stockPreferred stock whose dividends accrue, should the issuer not make timely dividend payments. Related: Non-cumulative preferred stock. Cumulative Translation Adjustment (CTA) accountCumulative Translation Adjustment (CTA) accountAn entry in a translated balance sheet in which gains and/or losses from translation have been accumulated over a period of years. The C.T.A. account is required under the FASB No. 52 rule. Cumulative dividend featureCumulative dividend featureA requirement that any missed preferred or preference stock dividends be paid in full before any common dividend payment is made. Cumulative probability distributionCumulative probability distributionA function that shows the probability that the random variable will attain a value less than or equal to each value that the random variable can take on. NoncumulativeNoncumulativeApplies mainly to convertible securities. Type of preferred stock on which unpaid or omitted dividends do not accrue. Omitted dividends are, as a rule, gone forever. Further SuggestionsCumulative total returnCumulative abnormal return (CAR) cumulative preferred stock |
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