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Cumulative preferred shares

Preferred shares on which an unpaid dividend is not lost but accrues and remains payable later.

How to read the number

The obligation to the holder builds up quietly, and until the arrears are settled ordinary shares normally receive nothing at all.

When the metric lies

Cumulation is a feature of a particular issue under the articles, not a general property of preferred stock; on the Russian market it is rare.

Also known as: cumulative prefs

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