Legal Dictionary of Pakistan
Quick lookup for English, Urdu, and Latin legal terms used in Pakistani jurisprudence.
cumulative preferred stock
Preferred stock that must pay dividends in full before common shareholders may receive any dividend. ( If the corporation omits a dividend in a particular year or period, it is carried over to the next year or period and must be paid before the common shareholders receive any payment. - Also termed cumulative stock; cumulative preference share.
noncumulative preferred stock
Preferred stock that does not have to pay dividends that are in arrears. ( Once a periodic dividend is omitted, it will not be paid. - Also termed noncumulative stock.