cumulative preference sharenoun [ C ]
ukusUS cumulative preferred stockFINANCE, STOCK MARKET a type of share that gives its owner the right to receive a set amount of money as a dividend. If this money cannot be paid in time, it must be paid later, and before any money is paid to owners of ordinary shares:
The holders of cumulative preference shares are entitled to recover the arrears of preference dividend before any dividend is paid on equity shares.