In the case of a preferred dividend, if the company does not pay the dividend to its shareholders, it accumulates. This means that in the future, arrearage must be paid before any dividend can be paid on common stock.
Investment dictionary. Academic. 2012.
arrearage — ar·rear·age /ə rir ij/ n 1: the condition of being in arrears 2: something that is in arrears; esp: something unpaid and overdue: arrear often used in pl. the Virginia court reduced the arrearage s to a final judgment Natio … Law dictionary
Arrearage — Ar*rear age, n. [F. arr[ e]rage, fr. arri[ e]re, OF. arere. See {Arrear}.] That which remains unpaid and overdue, after payment of a part; arrears. [1913 Webster] The old arrearages . . . being defrayed. Howell. [1913 Webster] … The Collaborative International Dictionary of English
arrearage — (n.) unpaid debt, early 14c., from O.Fr. arierage detriment, prejudice (in a legal sense) (Mod.Fr. arrérage), from arere behind; see ARREARS (Cf. arrears) … Etymology dictionary
arrearage — [ə rir′ij] n. [ME arerage < OFr arierage < ariere: see ARREARS] 1. the state of being in arrears 2. arrears … English World dictionary
arrearage — noun Date: 14th century 1. the condition of being in arrears 2. something that is in arrears; especially something unpaid and overdue … New Collegiate Dictionary
arrearage — /euh rear ij/, n. 1. the state or condition of being in arrears. 2. Often, arrearages. arrears; amount or amounts overdue. 3. Archaic. a thing or part kept in reserve. [1275 1325; ME arerage < OF. See ARREAR, AGE] * * * … Universalium
arrearage — noun a) A condition of being in arrears. b) An item that is in arrears, as periodic payments on a debt or for taxes … Wiktionary
arrearage — In the context of investments, refers to the amount by which interest on bonds or dividends on cumulative preferred stock is due and unpaid. Bloomberg Financial Dictionary … Financial and business terms
arrearage — Synonyms and related words: arrear, arrears, back debts, back payments, bouncing check, break, debt, decline, defalcation, default, defect, defectiveness, deferred payments, deficiency, deficit, deficit financing, delinquency, discontinuity,… … Moby Thesaurus
arrearage — (Roget s Thesaurus II) noun 1. A condition of owing something to another: arrears, indebtedness, debt, liability, obligation. See PAY. 2. Something, such as money, owed by one person to another: arrears, debt, due, indebtedness, liability,… … English dictionary for students
