One of the mysteries of the English language finally explained.
A preference share whose annual fixed-rate dividend, if it cannot be paid in any year, accrues until it can.
- ‘Shares could also be issued, for example cumulative preference shares with a dividend calculated to reflect the amount of interest and principal received.’
- ‘The nominal value of each cumulative preference share changed to 0.12 Euros.’
- ‘If the dividend on a cumulative preference share is not paid, the payment is deferred and any arrears have to be paid prior to further ordinary dividend payouts.’
- ‘Also in 2006, the cumulative preference shares purchase programme will be continued, and 525,000 shares are expected to be repurchased.’
- ‘According to the notice, the redeemable cumulative preference shares are redeemable not later than 20 years from the date of allotment.’
Top tips for CV writingRead more
In this article we explore how to impress employers with a spot-on CV.