Arrearage

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Arrearage

In the context of investments, refers to the amount by which interest on bonds or dividends on cumulative preferred stock is due and unpaid.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Arrearage

A previously due payment that has not been made. For example, because preferred stock has guaranteed dividends, a company is legally required to pay all dividends on preferred stock before it makes any dividend payments on common stock. If the company does not do so, usually because it has become cash poor, the preferred dividends are said to be in arrearage. This is also called being in arrears.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

arrearage

An overdue payment. See also dividends in arrears.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.