Cumulative preferred stock or income bond

A preferred stock carrying dividends: or an income bond carrying interest: at a fixed rate and entitled to receive all such dividends or interest not paid in previous years before the common stock can receive any payment. Some issues are cumulative only to the extent that dividends and interest have been earned but unpaid in any year. (Suggested title for these: earned cumulative issues.) In the case of many railroad income bonds the accumulation of interest is limited (usually to a maximum of three years), after which they become noncumulative.