The cumulative feature of preferred stock means that preferred dividends cannot be paid until all common dividends have been paid.

Name: The cumulative feature of preferred stock means that preferred dividends cannot be paid until all common dividends have been paid.
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The cumulative feature of preferred stock means that if any preferred dividends are skipped, they must be paid out before any dividends can be paid to common shareholders, but it does not require common dividends to be paid first.

The Cumulative Feature of Preferred Stock Means That Preferred Dividends