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Finance

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  • April 6, 2022
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Non-Cumulative Preferred Stock

A preferred stock that doesn’t entitle the holder to be made up any passed or missed dividends (dividends that have not been paid) before the resumption of common dividends payment. In other words, dividends on this type of stock don’t accumulate if the firm misses a dividend payment. This type of stock was originally issued by railroad companies and is unpopular today.


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