cumulative preferred stock
- A type of preferred stock that gives its holders the right to receive both cumulative and current dividends before any dividends are given to those who hold common stock
- The board of directors agreed to issue cumulative preferred stock to secure the company's financial future.
- Investors with cumulative preferred stock are paid before common stockholders during dividend distribution.
- Cumulative preferred stock is a popular choice for investors who want a stable and preferential dividend payout.