Cumulative preferred stocks are preferred stocks for which all passed (unpaid) dividends in arrears must be paid in additional shares of preferred stock prior to the payment of dividends to common stockholders.

Question

Quizplus · Accepted Answer

Cumulative preferred stocks require that all unpaid dividends be paid in cash before any dividends can be paid to common stockholders, not in additional shares.

Cumulative Preferred Stocks Are Preferred Stocks for Which All Passed