fixed rate preference shares

fixed rate preference shares
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.
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Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

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  • 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

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