Noncumulative preferred stock

Noncumulative preferred stock,

Definition of Noncumulative preferred stock:

  1. A classification of stock ownership that allows the company to avoid paying dividends to the shareholder when certain financial benchmarks are not achieved. If a dividend payment is not made, the shareholder has no right to receive the missed payment at a later date.

Meaning of Noncumulative preferred stock & Noncumulative preferred stock Definition