When preferred stock is cumulative, preferred dividends not declared in a given period are called dividends in arrears.

Name: When preferred stock is cumulative, preferred dividends not declared in a given period are called dividends in arrears.
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Cumulative preferred stock means that if dividends are not declared in a given period, they accumulate and must be paid out before any dividends can be paid to common shareholders. These unpaid dividends are known as dividends in arrears.

When Preferred Stock Is Cumulative, Preferred Dividends Not Declared in a Given