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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.
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Who is a prefrence share holder?
A prefrence share holders are those who take less risk i.e whose rate of dividend is fixed,if a company has less or much more profit he has fixed rate
What is cumulative prefrence share?
Cumulative preference shares are a type of equity security that entitles shareholders to receive dividends before any dividends are paid to common shareholders. If the company skips a dividend payment, the unpaid dividends accumulate and must be paid out in the future before any distributions can be made to common shareholders. This feature provides a level of financial security to cumulative preference shareholders, ensuring they receive their entitled returns even if the company faces financial challenges.
What are the types of preference share?
1.cumulative preference share capital 2.non cumulative preference share capital 3.participative preference share capital 4.non participative preference share capital
What are the various types of preference share?
1.cumulative preference share capital 2.non cumulative preference share capital 3.participative preference share capital 4.non participative preference share capital
What are Cumulative and non cumulative preference shares?
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.
What are Cumulative and non cumulative shares?
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.
How would you define cumulative voting?
Cumulative voting, which permits shareholders to cast one vote for each share of common stock owned in any combination, is prevalent.
What is non-cumulative perference share?
non cumulative shares are those shares which do not get previouse dividends due to company's bad financial position. for example, if they were suppose to get dividend @10% last year, but could not get due to bad financial position of the company, and in the current year company gets stable and is willing to pay dividend, so it will pay only current year dividends and not last year dividends... if it was cumulative share company would pay last year and current year dividend.. conclusion: non cumulative share doesnot get previouse dividends and cumulative share gets all dividends (previouse+ current) when compnay restores its good financial position.
What is non cumulative perference share?
non cumulative shares are those shares which do not get previouse dividends due to company's bad financial position. for example, if they were suppose to get dividend @10% last year, but could not get due to bad financial position of the company, and in the current year company gets stable and is willing to pay dividend, so it will pay only current year dividends and not last year dividends... if it was cumulative share company would pay last year and current year dividend.. conclusion: non cumulative share doesnot get previouse dividends and cumulative share gets all dividends (previouse+ current) when compnay restores its good financial position.
What is prefrence share capital?
Preference share capital is that capital which has preference over any other kind of capital and it has fixed interest rate no matter company earning profit or not as well as first of all this capital is cleared at the event of liquidation.
What preference share is characterised by the property that should any dividends go unpaid those dividends must be paid before any future ordinary dividends?
cumulative preference share :)
Cumulative preference shares?
cumulative preference shares are those shares which get dividends for the current year and for the all previouse years if they were not paid due to the bad position of the compnay. suppose compay was suppose to pay dividends @ 10% every year to cumulative shares holders but could not pay fro two years due to bad financial position, and in the current year company is stable and willing to pay, so company will pay previouse + current year dividends to cumulative share holders, if it was non-cumulative share hoders compay would not pay all dividend, but it would pay only current year dividend. this is the difference between cumulative and non cumulative shares with respect to dividend payment. conculsion: cumulative gets all dividends if not paid earlier due to financail crises(previouse+ current) non cumulative gets only current dividend and not previouse dividend if not paid due to financial crises ( only current year dividend and all previouse are not paid)
