Cumulative preferred stock means that dividends accumulate interest during the year.Cumulative preferred stock means shares receive priority for future dividends,if dividends are not paid in a given year.

Question

Quizplus · Accepted Answer

Cumulative preferred stock means that if dividends are not paid in a given year, they accumulate and must be paid out before dividends can be distributed to common stockholders, but they do not accumulate interest.

Cumulative Preferred Stock Means That Dividends Accumulate Interest During the Year.Cumulative