Question

Give one word / Term / phrase for each of the following statement :

Preference share on which arrears of dividend accumulate.

Answer 1

Cumulative Preference Share

Explanation: In case of cumulative preference shares, the unpaid dividend on preference shares is accumulated and treated as arrears. In other words, the dividend on such shares is carried forward to the next year. The unpaid dividend on these shares keeps on accumulating till it is paid.