Preference Shares

preference shares

Dividend that is first paid to preference shareholders before any dividends are paid to common stock holders, This shares represent partial ownership in a company to shareholders, but generally do not give voting rights. Preference shareholders has a greater claim on the company’s assets than common stockholders and this is a the major profit to owning preference shares. There are four different types of preferred stock:, participating , cumulative preferred, non-cumulatives preferred and convertible preferred

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