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Noncumulative Preferred Stock |
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Noncumulative preferred stock Preferred stock whose holders must forgo dividend payments when the company misses a dividend payment. Related: Cumulative preferred stock. Noncumulative Preferred Stock Preferred stock for which the publicly-traded company does not need to pay all dividends. If a company misses a dividend payment for any reason, it no longer owes the dividend to noncumulative preferred stockholders. That is, all dividends that were "skipped" are treated as if they never existed. Noncumulative preferred stocks are rare because they are unattractive to preferred stock investors. Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit the webmaster's page for free fun content. |
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