Capital stock which provides a specific dividend that is paid before any dividends are paid to common stock holders, and which takes precedence over common stock in the event of a liquidation. Like common stock, preference shares represent partial ownership in a company, although preferred stock shareholders do not enjoy any of the voting rights of common stockholders. Also unlike common stock, preference shares pay a fixed dividend that does not fluctuate, although the company does not have to pay this dividend if it lacks the financial ability to do so. The main benefit to owning preference shares are that the investor has a greater claim on the company's assets than common stockholders. Preferred shareholders always receive their dividends first and, in the event the company goes bankrupt, preferred shareholders are paid off before common stockholders. In general, there are four different types of preferred stock: cumulative preferred stock, non-cumulative preferred stock, participating preferred stock, and convertible preferred stock. also called preferred stock.
Related information about preference shares:
- Preference Shares Definition | Investopedia
Company stock with dividends that are paid to shareholders before common stock dividends are paid out. In the event of a company bankruptcy, preferred stock ...
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Preferred stock (also called preferred shares, preference shares or simply preferreds) is an equity security with properties of both an equity and a debt instrument ...
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Definition of preference shares: Capital stock which provides a specific dividend that is paid before any dividends are paid to common stock holders, and which ...
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Aug 31, 2005 ... Preference shares, on the other hand, are a little more special. ... To understand preference shares, you will have to first understand what ...
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May 18, 2010 ... Preference shares are like a halfway house between corporate bonds and equities. They are shares that pay a fixed income, with otherwise ...
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preference shares : Shares in a company which give their holders an entitlement to a fixed dividend but which do not usually carry voting rights. The important ...
- Protection and income with preference shares | Money Observer
Oct 27, 2011 ... But right under our noses there are high-yielding preferred (also known as preference) shares in familiar companies such as Aviva, Lloyds, ...
- Preference shares
Preference shares (prefs) are legally shares, but they are very different from ordinary ... Dividends on preference shares have to be paid before dividends on ...