The American "preferred stock " or the English "preference shares " are the issues which usually carry the "cumulative " feature, and it is very unusual to find "ordinary shares" (which correspond to the American "common stock ") which are "cumulative." But some of the English companies include this class. A notable example is that of Bovril Limited, which has its capital divided into the "debenture stock," 5 1/2% "cumulative preference shares," 7% "cumulative ordinary shares" and "deferred shares." "Cumulative ordinary shares" are, to all intents and purposes, "preference shares " and might more properly correspond to the American "second preferred," as we occasionally have a company with two classes of "preferred" - divided into "first" and "second preferred," or "A" and "B preferred."
(First read "Cumulative.") There is an English custom, especially in speculative enterprises, of issuing a class of "cumulative participating preference shares" which, besides being entitled to the full preferential dividend, have, also, a right to a further participation in the profits, after a certain stated amount has been paid to the holders of the "ordinary shares." Shares of this class are well guarded, for they not only carry the right to a fixed rate of dividend, prior to any declaration upon the "ordinary shares," by which, under stagnant business conditions, the latter might not obtain any dividends whatsoever, but in case of large earnings obtain a further division. Such issues are not common.
The English equivalent of the American "cumulative preferred stock." (See "Cumulative.")
This is a system of voting by which each voter has the same number, or within one of the same number, of votes as there are offices to be filled, thus permitting him to cast them all for one candidate or distribute them as he sees fit. The Revised Statutes of the United States, in relation to national banks, provide that: "In all elections of directors and deciding all questions at meetings of shareholders, each shareholder shall be entitled to one vote on each share of stock held by him/' and it is held by the Comptroller of the Currency that this does not permit of "cumulative voting." It is seldom a desirable arrangement, and usually apt to work in a disadvantageous way.
The English term for "coupon."