The value of investments can fall as well as rise, and you may get back less than you invested. Past performance is no guarantee of future results.

Non-cumulative is relevant to preferred stock, or preference shares.

Non-cumulative definition

Non-cumulative is relevant to preferred stock, or preference shares.

Preferred shares are usually issued with a stated dividend rate (a fixed amount in currency or as a percentage of the par value). However, non-cumulative preferred shareholders are not entitled to claim any dividends if the company does not make a payout at all.

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