Dividends can be cumulative or non-cumulative. This can be a huge factor in company cash flow and the company needs to carefully consider what the appropriate dividend percentage is. Dividend rights / right to dividends: - Rights to receive preferential dividends as compared to common shareholders. Generally, preferred shares have the following financial rights (Some of them are mentioned in the sample term sheet - ) :-Ī. ![]() This article is in continuation to the term sheet series.
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