0
What is the different between preference shares and paid-up shares?
Wiki User
∙ 13y ago
Preference shares have a dual nature. They receive a fixed interest payment for a pre determined time period (say 10 years) or for a specific stock price of the underlying company (say $40). When the criteria has been met the preference share can be converted into "common" stock or sold back to the issuer depending on the terms.
When a company needs money, it sells stock which reperesents an ownership in the company. So if a company issued shares for $10 par value but at the time of selling the stock was $50 it has a "paid up" of $40. Par value almost always means nothing. So the company wouldve sold a portion of its business for $50 a piece.
Wiki User
∙ 13y ago
Add your answer:
Earn +20 pts
What is the formula of asset backing ratio?
Book Value of Shares divided by paidup Valur of Shares.
What are the sources of capital of joint stock company?
different types of shares..equity,,preference
What is the difference between preference shares and share premium?
Preference shares are paid to shareholders before common stock dividends are paid out. Share premium can not be distributed, however, but under certain circumstances can be reduced.
What is the difference between ordinary shares non-voting shares and preferred shares?
Preferense share has the preference over all other kind of shares for payment at the time of liquidation and it gets fixed percentage of interest even in case of loss.Non-Voting shares are those share which donot have the right to vote in meetings.Ordinary shares has the voting rights and share profit as well as loss and has the payment priority at last from any other debt.
What are the difference between equity share capital and preference shares capital and examples?
Preference share capital is type of capital which has preference on other type of share capital as preference share capital may have more profit ratio than other and it is paid first from profit of company and preference share holders get there share even if company has earn no profit. Equity share capital is share capital on which share holders get share from profit in the last after paying every other obligation on company. Detail answer available in related link.
What is the formula of asset backing ratio?
Book Value of Shares divided by paidup Valur of Shares.
What is the difference between a normal and a participating preference share?
what is defference between normal and preference shares
What is preference share?
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.
Can equity shares be converted in to preference shares?
i want 2 convert the equity shares of my cmpany into preference shares
What are the Two types of shares?
There are different types of shares available. Some examples include ordinary shares, preferred shares, cumulative preference shares, and redeemable shares.
What is compulsorily convertible preference shares?
it is a preference shares which willbe converted compulsory into equity shares after a stipulated time
What is 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.
Similarities between ordinary shares and preference shares?
1 - Both are part of share capital of business 2 - Both have the voting powers 3 - Both are equity based financing tools.
What are convertible and non convertible preference shares?
in case of non convertible preference shares, the holders are not given the right to convert their shares into equity shares.
What are the sources of capital of joint stock company?
different types of shares..equity,,preference
What is limitations of preference shares?
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.
What is the difference between preference shares and share premium?
Preference shares are paid to shareholders before common stock dividends are paid out. Share premium can not be distributed, however, but under certain circumstances can be reduced.
