What is the difference between cumulative and non - cumulative share?

Asked by Last Modified  

1 Answer

Learn Mathematics +2 Class IX-X Tuition Shares and Dividends

Follow 0
Answer

Please enter your answer

Saurabh Bala

A term sheet may refer to dividends as being either cumulative or non-cumulative. The key difference is that if the dividend is non-cumulative and the company (through its board) doesn't make a decision to issue a dividend in year one, or doesn't have the cash resources to do so, the next year the divident...
read more
A term sheet may refer to dividends as being either cumulative or non-cumulative. The key difference is that if the dividend is non-cumulative and the company (through its board) doesn't make a decision to issue a dividend in year one, or doesn't have the cash resources to do so, the next year the divident slate is wiped clean and the company has no obligation to 'catch up' on the issuance of dividends for previous years. What this means is that if the dividend is not issued in year one and a dividend were to be issued in the next year, the company would not be obligated to issue dividends cumulatively or retroactively for previous years in which the company was unable to issue a dividend. This can also have an effect on the sale of the company. A cumulative dividend clause will trigger a payout to preference shareholders that includes what they would have been paid by way of dividend for all those years they never received one and this payment would rank before any sharing of the exit rupees with ordinary shareholders. read less
Comments
Dislike Bookmark

Related Questions

What is an algebraic expression in math?
In mathematics, an algebraic expression is a combination of numbers, variables, and mathematical operations. Variables are letters that represent unknown values.
Raghbendra
0 0
View Comments7
The lengths of the diagonals of a rhombus are 30 cm and 40 cm. Find the side of the rhombus.
diagonals of a rhombus are perpendicular bisector so we can find side of rhombus with pythagoras theorem. H^2 = P^2 + B^2 Side^2 = 15^2 + 20^2 Side^2 = 225 + 400 Side^2 = 625 Side = 25
Satish
0 0
View Comments6
How long should a student of class 9 practice math?
For an average and a slow learner 2 hours per day is required whereas for a above average just enough to have at glance. It depends on the strengths of the child on the subject.
Bhushan
0 0
View Comments5
I want to take online classes on database/ ETL testing. Also i look forward to teach Mathematics/Science for class X-XII
Both are co-related to each other but compare to DBA Jobs, ETL job is more demanding hence you take class for informatica tools and others.
Varsha
0 0
View Comments7
Should I stop my tuitions before 2 months of the board exam CBSE class 10?
NOT necessarily. if u use ur that precious time properly. its better to b with ur teacher till end.
Kumarpalaksha
0 0
View Comments5

Now ask question in any of the 1000+ Categories, and get Answers from Tutors and Trainers on UrbanPro.com

Ask a Question

Related Lessons

Proving and Using Trigonometric Identities

Azumthulla Gilledmanda

0 0
View Comments0
Class-10 L-4 Quadratic Equations Ex-4.2 Q2 (ii) QF

Ashish Bhatia

0 0
View Comments0
Class-10 L-5 Arithmetic Progressions Ex-5.2 Q6

Ashish Bhatia

0 0
View Comments0
Master Euclid’s Division Lemma with Simple Steps
Enter Learning Tip Content

Saurav

0 0
View Comments0
Exercise 3.3 2nd question 1 sub question solution

Irfan

0 0
View Comments0

Recommended Articles

Quest Academy - Institute of the month

Quest Academy is a professional Bangalore based NEET and JEE (Main + Advanced) training institute. The academy was incorporated in 2015 to cater to the needs of students, who aim to crack competitive exams by connecting with the best brains around. The institute helps students enhance their skills and capabilities through...

Read full article >

Meet Sandhya R, a B.Sc tutor from Bangalore

Sandhya is a proactive educationalist. She conducts classes for CBSE, PUC, ICSE, I.B. and IGCSE. Having a 6-year experience in teaching, she connects with her students and provides tutoring as per their understanding. She mentors her students personally and strives them to achieve their goals with ease. Being an enthusiastic...

Read full article >

Meet Raghunandan.G.H, a B. Tech Tutor from...

Raghunandan is a passionate teacher with a decade of teaching experience. Being a skilled trainer with extensive knowledge, he provides high-quality BTech, Class 10 and Class 12 tuition classes. His methods of teaching with real-time examples makes difficult topics simple to understand. He explains every concept in-detail...

Read full article >

Meet Mohammad Wazid, a skilled trainer for...

Mohammad Wazid is a certified professional tutor for class 11 students. He has 6 years of teaching experience which he couples with an energetic attitude and a vision of making any subject easy for the students. Over the years he has developed skills with a capability of understanding the requirements of the students. This...

Read full article >

Find Class 10 Tuition near you
Class 10 Tuition in Delhi
Class 10 Tuition in Bangalore
Class 10 Tuition in Hyderabad
Class 10 Tuition in Kolkata
Class 10 Tuition in Mumbai
Class 10 Tuition in Chennai
Class 10 Tuition in Pune
Class 10 Tuition in Lucknow
Class 10 Tuition in Noida
Class 10 Tuition in Jaipur
Online Tuition Class 10

Looking for Class 10 Tuition ?

Learn from the Best Tutors on UrbanPro

Are you a Tutor or Training Institute?

Join UrbanPro Today to find students near you