preferred share
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a share which entitles the holder to a fixed dividend, whose payment takes priority over that of ordinary share dividends.
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Examples (10)
- Investors often choose preferred shares for their stable income.
- The company decided to issue new preferred shares to raise capital.
- Holders of preferred shares receive a fixed dividend before common stockholders.
- Unlike ordinary shares, preferred shares usually do not carry voting rights.
- She diversified her portfolio by investing in both common and preferred shares.
- The dividend payment on preferred shares has priority over that of ordinary shares.
- Many institutional investors favor preferred shares for their predictable returns.
- The terms of the preferred share offering included a convertible option.
- If the company liquidates, preferred share holders are paid before common shareholders.
- Analyzing the risk and reward of preferred shares is crucial for any investor.