preference share

Frequency: 4.51.8 per million words

a share which entitles the holder to a fixed dividend, whose payment takes priority over that of ordinary share dividends.

shareADJECTIVE + share (noun)

Categories:

preference

Examples (10)

  • Investors often choose preference shares for their stable dividends.
  • The company issued new preference shares to raise capital without diluting control.
  • Holders of preference shares receive dividends before ordinary shareholders.
  • Investing in preference shares can offer a more predictable income stream.
  • Unlike ordinary shares, preference shares usually do not carry voting rights.
  • The dividend on preference shares is typically fixed.
  • Many companies use preference shares as a hybrid financing instrument.
  • Converting preference shares to ordinary shares is an option in some cases.
  • Before liquidation, preference share holders have priority over ordinary shareholders.
  • The market for preference shares can be less volatile than for common stock.