The term, "cumulative," as that terminology is applied to shares of stock sold to investors by a corporation, means

any "dividends in arrears" from the corporation on the preferred shares must be paid to the preferred shareholders in full, including the current year's dividend, before any dividends are available to common shareholders in the current year.

any "dividends in arrears" from the corporation on the common shares must be paid to the common shareholders in full, including the current year's dividend, before any dividends are available to the preferred shareholders in the current year.

all purchases of preferred stock must be paid for in full before the corporation is allowed to pay any dividends to preferred shareholders.

all purchases of preferred stock must be paid for in full before the corporation is allowed to pay any dividends to the common shareholders.