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You wrote, Pfd must be cumulative

This is actually a common attribute of trust preferreds and an uncommon attribute of corporate preferreds. With trust preferreds, you're essentially a creditor of the corporation. (Actually the trust is, but the trust has a fiduciary obligation to you.)

With corporate preferreds, you're just a stock holder that has agreed to give the company money in the hopes of receiving an (above average) income stream while giving up any aspirations of capital gains. Should things go south, a corporate preferred holder may loose both the income stream and eventually their original investment as creditors will receive preference in a liquidation or reorganization.

- Joel
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