in case of non convertible preference shares, the holders are not given the right to convert their shares into equity shares.
it is a preference shares which willbe converted compulsory into equity shares after a stipulated time
Cumulative shares are when the shares are combined and then evenly distributed to the share holders. Non cumulative preference shares are when they go to certain people first.
The question is not answered
The non cumulative irredeemable preference shares do not accumulate over time. This therefore means that they cannot be redeemed in future.
potential equity shares are those 1. whose resources/considerations has been received and 2. whose resources have been reinvested in business. examples of potential shares are convertible preference shares, convertible debentures, employees stock options and share warrant.
Preference shares are shares whose dividends are paid out first before ordinary shares dividends. They so called (preference shares) because they have 'preference' over ordinary shares for payment of dividends.
i want 2 convert the equity shares of my cmpany into preference shares
Lets understand meaning of Preference Share in Layman language. As name suggest preference shares are those kind of shares which has preference in payment of dividend, and price of shares over equity shares. If company earn net profit, then first return to preference shareholders are given at first, and then to equity shareholders.
Convertible preference share is a share that gives its investors the option to convert his Preference Shares into Ordinary Equity Shares. However, this option can be availed only after a prescribed period. The shareholder gets his dividend at a fixed rate and investors invest in them as fixed income securities.
preference shares are more costlier because:- 1. they get preference for repayment of capital 2.they get preference for payment of dividend 3.they are less risky 4. can get charge over fixed assets 5.they are also convertible ans can further be expanded using these points
these debentures which give an option to their holder to convert them into equity or preference shares at specified rate of exchange after a certain period. when such debenture holders exercise the right of convertion, they cease to be lenders to the company and become its members. the convertible debentures may be fully convertible or partly convertible
One of the limitations to preference shares is that the shareholder does not have a voting right. Preference shares normally pay a fixed dividend where common stocks do not pay a fixed dividend.