Noncumulative preferred stock
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Noncumulative preferred stock is preferred stock that does not entitle its holders to a dividend for any year in which a dividend is not declared. *Nonparticipating preferred stock. Preferred stock that entitles its holders only to a certain percentage of dividend, the remainder going to holders of common stock.
Definitions
According to College Accounting: A Practical Approach by Slater (13th edition),
- Noncumulative preferred stock. Preferred stock that does not entitle its holders to a dividend for any year in which a dividend is not declared. *Nonparticipating preferred stock. Preferred stock that entitles its holders only to a certain percentage of dividend, the remainder going to holders of common stock.
Related concepts
- Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.
