Preference shares

[abhishreshthaa]

Preference shares: it is an ownership security like an ordinary share but it carries a fixed rate of return like a debenture.


The holders of preference shares are entitled to income after the claims of creditors of the company have been met, but before ordinary shareholders receive any income. There are different types of preference shares in the market.


1. Cumulative and Non-cumulative

2. Convertible and Non-convertible

3. Redeemable and Non-redeemable

4. Participating and Non-participating

 

[jiten005]

Preference shares: it is an ownership security like an ordinary share but it carries a fixed rate of return like a debenture.


The holders of preference shares are entitled to income after the claims of creditors of the company have been met, but before ordinary shareholders receive any income. There are different types of preference shares in the market.


1. Cumulative and Non-cumulative

2. Convertible and Non-convertible

3. Redeemable and Non-redeemable

4. Participating and Non-participating

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