cumulative preference share Meaning in the Cambridge English Dictionary Cambridge dictionaries logo
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Meaning of “cumulative preference share” in the English Dictionary

"cumulative preference share" in Business English

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cumulative preference sharenoun [C]

uk   us   ( US cumulative preferred stock)
FINANCE, STOCK MARKET a type of share that gives its owner the right to receive a set amount of money as a dividend. If this money cannot be paid in time, it must be paid later, and before any money is paid to owners of ordinary shares: The holders of cumulative preference shares are entitled to recover the arrears of preference dividend before any dividend is paid on equity shares.
(Definition of cumulative preference share from the Cambridge Business English Dictionary © Cambridge University Press)
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