Cumulative Preferred Stock in United States

Practical Information

Note: Some of this information was last updated in 1982

A class of preferred stock (in U.S. law), which, if dividends are not paid in any given year or dividend (in U.S. law) period, entitles the owner to the arrearage in subsequent years. Ordinarily, if the certificate (in U.S. law) of Incorporation does not specify whether the stock is to be cumulative, the law will hold the preferred stock to be cumulative. See noncumulative preferred stock (in U.S. law).

(Revised by Ann De Vries)

What is Cumulative Preferred Stock?

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