Warning

Info

Warning

Info

Warning

Info

LSDefine

Simple English definitions for legal terms

cumulative preferred stock

Read a random definition: Special appearance

A quick definition of cumulative preferred stock:

Term: Cumulative Preferred Stock

Definition: Cumulative preferred stock is a type of stock that gives its holders priority over common stockholders when it comes to receiving dividends. If a company is unable to pay dividends in a given year, the missed payments accumulate and must be paid before any dividends can be paid to common stockholders. This means that holders of cumulative preferred stock are guaranteed to receive their dividends eventually, even if the company experiences financial difficulties.

A more thorough explanation:

Definition: Cumulative preferred stock is a type of stock that guarantees its holders a fixed dividend payment before any dividends are paid to common stockholders. If the company fails to pay the dividend in any given year, the unpaid dividends accumulate and must be paid before any future dividends can be paid to common stockholders.

Example: Company XYZ issues cumulative preferred stock with a dividend rate of 5%. If the company earns a profit and decides to pay dividends, it must first pay the 5% dividend to the holders of cumulative preferred stock before any dividends can be paid to common stockholders. If the company fails to pay the dividend in any given year, the unpaid dividends accumulate and must be paid before any future dividends can be paid to common stockholders.

Explanation: Cumulative preferred stock is a way for companies to attract investors who want a guaranteed dividend payment. The example illustrates how holders of cumulative preferred stock are entitled to receive their dividend payment before any dividends are paid to common stockholders. It also shows how unpaid dividends accumulate and must be paid before any future dividends can be paid to common stockholders.

cumulative preference share | cumulative remedy

Warning

Info

General

General chat about the legal profession.
main_chatroom
👍 Chat vibe: 0 👎
Help us make LSD better!
Tell us what's important to you
[] AromaticTroubledDormouse
20:55
How does one know if they are UR1 or UR2?
[] AromaticTroubledDormouse
20:56
CONGRATS MACAQUE!
TY
got a random stanford email and almost had a heart attack
ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
[] baddestbunny
4:29
let’s get after it boys and girls
Dkk
5:21
I gtg to bed soon.
Dkk
5:22
Big day today. Gunna be a crazy one. I will sleep through the first half.
good morning lsd it is 5 am EST
also jazzy my ndls address went long ages ago i sadly do not think it means anything
my stanford address also went long LOL i think at most it's an indicator it's under review
WorthlessAttractiveZombie
7:44
My berkeley paragraph finally disappeared. I definitely think it is just an indicator that they are actively reviewing files, and does not mean anything about A, WL, or Rs
LSD+ is ad-free, with DMs, discounts, case briefs & more.