cumulative preference shares

[abhishreshthaa]

In case of cumulative preference shares if dividend is skipped in any period, it has to be paid subsequently. Convertible preference shares can be converted into ordinary shares in terms and conditions fixed at the time of issue of such shares.


A redeemable preference shares matures at a fixed period of time and for all practical purposes it is regarded as a debt security like a debenture. Participating preference shareholders can earn a higher divided than the fixed one if the company makes good profits.

 

[jiten005]

In case of cumulative preference shares if dividend is skipped in any period, it has to be paid subsequently. Convertible preference shares can be converted into ordinary shares in terms and conditions fixed at the time of issue of such shares.


A redeemable preference shares matures at a fixed period of time and for all practical purposes it is regarded as a debt security like a debenture. Participating preference shareholders can earn a higher divided than the fixed one if the company makes good profits.

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