Unpaid dividends on cumulative preferred stock are called dividends in arrears.

Name: Unpaid dividends on cumulative preferred stock are called dividends in arrears.
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Unpaid dividends on cumulative preferred stock are called dividends in arrears. If a company is unable to pay a dividend to its preferred shareholders, the unpaid amount accumulates and is referred to as dividends in arrears. This means that the company is obligated to pay these dividends before paying any dividends on common stock.

Unpaid Dividends on Cumulative Preferred Stock Are Called Dividends in Arrears