NAME: Saman Zulfiqar

ROLL NO: 18L-o084

SECTION: BBA-B

Cumulative preference share

Cumulative preference shares are those preference shares the holders of

which are entitled to recover the arrears of preference dividend, before any
dividend is paid on equity shares. This means that if in any year, the profit
of the company is insufficient to pay dividend on these shares, the dividend
keeps on accumulating until it is fully paid.

Non-cumulative preference shares

The holders of such shares get a fixed amount of dividend out of the profits
of each year. If no dividend is declared in any year due to any reason such
shareholders get nothing, nor can they claim unpaid of any year in any
subsequent year.