Cumulative shares are when the shares are combined and then evenly distributed to the share holders. Non cumulative preference shares are when they go to certain people first.
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Cumulative shares refer to a type of share in a mutual fund or exchange-traded fund (ETF) where any missed dividends or interest payments accumulate and must be paid out to shareholders in the future. Non-cumulative shares, on the other hand, do not accumulate unpaid dividends or interest. If a payment is missed, shareholders with non-cumulative shares do not receive it.
Cumulative shares are when the shares are combined and then evenly distributed to the share holders. Non cumulative preference shares are when they go to certain people first.
The non cumulative irredeemable preference shares do not accumulate over time. This therefore means that they cannot be redeemed in future.
non cumulative shares are those shares which do not get previouse dividends due to company's bad financial position. for example, if they were suppose to get dividend @10% last year, but could not get due to bad financial position of the company, and in the current year company gets stable and is willing to pay dividend, so it will pay only current year dividends and not last year dividends... if it was cumulative share company would pay last year and current year dividend.. conclusion: non cumulative share doesnot get previouse dividends and cumulative share gets all dividends (previouse+ current) when compnay restores its good financial position.
cumulative percentage = (cumulative frequency ÷ n) x 100
No, cumulative is not a compound word.