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

Asked by Last Modified  

1 Answer

Learn Mathematics +2 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 the relationship between linear algebra and calculus?
linear algebra deals with vector spaces and linear transformations, often used in solving systems of linear equations. Calculus, on the other hand, focuses on rates of change and accumulation. They are...
Sarath Chandra
0 0
7

28π123
3091.3
Dharini
0 0
7
There are two points on a highway a,b. They are 70 km apart. An auto starts from A and another auto starts from B simultaneously. If they travel in the same direction, they meet in 7 hours, but if they travel towards each other they meet in 1 hour. Find how fast the two autos are.
40 and30
Ravichander
0 0
6
Cards, marked with numbers 5 to 50, are placed in a box and mixed throughly. A card is drawn from teh box at random. Find the probability that the number on the taken out card is: (i) a prime number less than 10. (ii) a number which is a perfect square." "
The sample size is 46 (i) The prime numbers less than 10 are 5 and 7. so the probability is 2/46 or 1/23. (ii) The perfect squares are 9,16,25, 36 and 49-five in all so the probability is 5/46
Akhil
0 0
5
What is Algebraic K-Theory?
https://vz-3ad30922-ba4.b-cdn.net/058df44f-722a-49be-822b-67acfa19fd4c/play_480p.mp4
Priya
0 0
7

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

Ask a Question

Related Lessons

Mastering Simple Calculations, my way!
Did you ever wonder how you can master simple calculations? 37 + 49? let's add 3 to 37 making it 40 and then subtracting 3 from 49 making it 46. Here it is 46 + 40 = 86 which is same as 37 + 49 = 86. ...
D

Deleted User

3 0
0
SURFCE AREA OF CONE
SURFACE AREA OF CONE If, r=radis of the cone l= slant height Then, 1)Curved Surface Area of the cone= πrl 2)Total surface Area...

Ramakrishna Dhooli

0 0
0
Application of calculus in our daily life
Calculus is a powerful tool with numerous applications across various fields such as physics, engineering, economics, biology, and more. Let's explore some of the key applications of calculus: 1. Physics: Motion...

Ajay S Jadon

1 0
0
Class-10 L-4 Quadratic Equations Ex-4.2 Q2 (i)

Ashish Bhatia

0 0
0
Find The Area Of Triangle ABC (Important Question)
Question: Solution:

Sujoy Das

2 0
0

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 Chennai
Class 10 Tuition in Mumbai
Class 10 Tuition in Pune
Class 10 Tuition in Noida
Class 10 Tuition in Lucknow
Class 10 Tuition in Gurgaon
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