preference share

preferred shares of a corporation that have first claim to preferred dividends. Bloomberg Financial Dictionary
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A type of share that pays a fixed percentage dividend. Preference shareholders come before the ordinary shareholder when it comes to payment of dividends and if a company is wound up. However, as with Ordinary shares a dividend is only distributed if the company has sufficient distributable profits available. Financial Services Glossary

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preference share preference share Share

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   Preference or preferred shares entitle a holder to a prior claim on any dividend paid by the company before the payment is made on ordinary shares. The holder also has a prior claim on assets in the event of a liquidation. Typically these shares do not carry voting or pre-emptive rights.
   ► See also Ordinary Share Capital.

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preference share UK US noun [C] (also preferred share, mainly UK also preferential share) FINANCE, STOCK MARKET
a share in a company that gives the owner the right to receive a dividend (= part of the company's profit) before dividends are paid to owners of common shares, or when dividends on common shares are not paid at all
See also COMMON SHARE(Cf. ↑common share), PARTICIPATING PREFERENCE SHARE(Cf. ↑participating preference share), PREFERENCE STOCK(Cf. ↑preference stock), PREFERRED STOCK(Cf. ↑preferred stock)

Financial and business terms. 2012.

Look at other dictionaries:

  • preference share — a special type of share in a company, which has the characteristic that it confers an entitlement to a specified percentage rate of dividend that is payable in priority to the claims of ordinary shareholders. A company s share capital may be… …   Law dictionary

  • preference share — A share in a company yielding a fixed rate of interest rather than a variable dividend. A preference share is an intermediate form of security between an ordinary share and a debenture Preference shares usually confer some degree of ownership of… …   Big dictionary of business and management

  • preference share — A share in a company that is entitled to a fixed percentage dividend rather than a variable dividend; for example, a 6% preference share pays a dividend of 6% per annum. If the company goes into liquidation, the preference shares are paid out… …   Accounting dictionary

  • preference share — (or stock) (N. Amer. preferred share or stock) noun a share which entitles the holder to a fixed dividend whose payment takes priority over that of ordinary share dividends …   English new terms dictionary

  • preference share — /ˈprɛfrəns ʃɛə/ (say prefruhns shair) noun a share which ranks before ordinary shares in the entitlement to dividends, usually at a fixed rate of interest, and usually converting into an ordinary share at a future date. Also, US, preferred stock …   Australian English dictionary

  • preference share — One giving its holder a preference, either as to receipt of dividends, or as to payment in case of winding up, or both. In re Schaffer Stores Co., 224 App.Div. 268, 229 N.Y.S. 735, 739 …   Black's law dictionary

  • preference share — Brit. a share of preferred stock. [1835 45] * * * …   Universalium

  • preference share — Brit. a share of preferred stock. [1835 45] …   Useful english dictionary

  • Preference Share — ⇡ Vorzugsaktie …   Lexikon der Economics

  • preference share capital — Share capital consisting of preference shares. Under Financial Reporting Standard (FRS) 4, Capital Instruments, preference share capital was classified as non equity share capital. However, FRS 4 has now been replaced by FRS 25 (International… …   Accounting dictionary

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