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InvestHub.com's
Finance Dictionary and Glossary of Investment Terms

cumulative  

Definition 1.

An arrangement in which a payment not made when due is carried over to the following period. In business, this usually refers to payments to preferred stockholders and bondholders. If these payments are not made in the period in which they are incurred, then they accrue to the preferred stock or bond holder. Before any payments are made to common stockholders, the preferred stockholders and bondholders must be paid.
 
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