Preference shares
Barron's Business Dictionary:
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Preference shares
preferred stock that ranks ahead of other issues of preferred stock or common stock in terms of payment of dividends and its claim on assets in the event of liquidation; also known as preference shares.
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Investopedia Financial Dictionary:
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Preference shares
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 shareholders have a right to be paid company assets first. Preference shares typically pay a fixed dividend, whereas common stocks do not. And unlike common shareholders, preference share shareholders usually do not have voting rights.
Also referred to as preferred stock.
Investopedia Says:
There are four types of preference shares: Cumulative preferred, for which dividends must be paid including skipped dividends; non-cumulative preferred, for which skipped dividends are not included; participating preferred, which give the holder dividends plus extra earnings based on certain conditions; and convertible, which can be exchanged for a specified number of shares of common stock.
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Barron's Business Dictionary
Dictionary of Business Terms. Copyright © 2007 by Barron's Educational Series, Inc. All rights reserved.
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