fixed rate preference shares
- fixed rate preference shares
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Shares issued wholly for new consideration with no conversion rights or rights to acquire further shares or securities, which carry dividends of a fixed amount or fixed rate per cent of the nominal value. The dividends (plus any amount paid on redemption) must represent no more than a reasonable commercial return on the consideration for which the shares are issued.
Related links
Practical Law Dictionary. Glossary of UK, US and international legal terms.
www.practicallaw.com.
2010.
Look at other dictionaries:
stepped preference shares — are preference shares whose fixed percentage dividend will rise annually at a pre set rate … Financial and business terms
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 — A legal term used in bankruptcy to describe a transaction deemed to have occurred under circumstances favorable to the creditor that benefited from the transaction. This provision is intended to protect unsecured creditors. Under the U.S.… … Financial and business terms
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 — /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 …
ordinary shares — carry the residual economic value of a company. They carry rights to distribution of profits through dividends, to the surplus assets of a company on a winding up and to votes at general meetings of the company. Easyform Glossary of Law Terms. UK … Law dictionary
hurdle rate — / hɜ:d(ə)l reɪt/ noun 1. the rate of growth in a portfolio required to repay the final fixed redemption price of zero dividend preference shares 2. a minimum rate of return needed by a bank to fund a loan, the rate below which a loan is not… … Dictionary of banking and finance
participating preference share — A preference share entitled to a fixed rate of dividend and a further share in the profits of a company, for example after the ordinary shares have received a certain percentage … Accounting dictionary
adjustable-rate preferred stock — ARP Stock or cumulative preference shares in the USA whose dividends are linked to Treasury Bill interest rates. Minimum and maximum rates are specified by the application of a collar Convertible adjusted rate preferred stock can be converted to… … Big dictionary of business and management
Interest rate — Finance Financial markets Bond market … Wikipedia
