18:49
Duke is fun. I took a trip there when I was 19 or so. Really good time when I was a young rapscallion.
Warning
Info
LSDefine
Simple English definitions for legal terms
cumulative preference share
Read a random definition: lie in grant
A quick definition of cumulative preference share:
Cumulative preference share is a type of stock that gives the shareholder the right to receive dividends before common shareholders. If the company doesn't pay a dividend in a particular year, it carries over to the next year and must be paid before common shareholders receive any payment.A more thorough explanation:
A cumulative preference share is a type of preferred stock that guarantees its holder a preferential claim to dividends and corporate assets upon liquidation. If the corporation fails to pay dividends in a particular year or period, the unpaid dividends are carried over to the next year or period and must be paid before common shareholders receive any payment. This type of stock is also known as cumulative preferred stock.
For example, if a corporation issues cumulative preference shares with a dividend rate of 5%, and fails to pay dividends for two years, the unpaid dividends accumulate to 10%. The corporation must pay the accumulated dividends before paying any dividends to common shareholders.
Cumulative preference shares are often used by corporations to attract investors who seek a steady income stream. They provide a sense of security to investors as they are guaranteed to receive their dividends, even if the corporation experiences financial difficulties.