preference shares

preference shares
Preference Shares have preferred rights that rank ahead of ordinary shares. The rights are commonly (1) a dividend of fixed percentage of their nominal value payable annually on set dates, often cumulative (i.e. if not paid the dividend is carried forward

Easyform Glossary of Law Terms. — UK law terms.


preference shares
Generally, shares which rank ahead of other shares either as to dividends or capital or both, but which carry limited voting rights. They are normally fixed-income shares; they do not usually participate in the success of the company and are therefore generally a less risky form of investment than ordinary shares. The exact nature of preference shares and the rights attaching to them are set out in the company's articles of association.
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Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

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Look at other dictionaries:

  • preference shares — Shares in a company which usually receive a fixed dividend each year and which, if redeemed, are redeemed at par value. Although the dividend ( dividends) is fixed, it is not guaranteed. However, if the company fails to pay ( passes ) the… …   Financial and business terms

  • Preference Shares — Company stock with dividends that are paid to shareholders before common stock dividends are paid out. In the event of a company bankruptcy, preferred stock shareholders have a right to be paid company assets first. Preference shares typically… …   Investment dictionary

  • preference shares — noun stock whose holders are guaranteed priority in the payment of dividends but whose holders have no voting rights • Syn: ↑preferred stock, ↑preferred shares • Hypernyms: ↑stock • Hyponyms: ↑cumulative preferred, ↑cumulativ …   Useful english dictionary

  • preference shares — N PLURAL Preference shares are shares in a company that are owned by people who have the right to receive part of the company s profits before the holders of ordinary shares are paid. They also have the right to have their capital repaid if the… …   English dictionary

  • preference shares — / pref(ə)rəns ʃeəz/ plural noun shares (often with no voting rights) which receive their dividend before all other shares and are repaid first (at face value) if the company goes into liquidation (NOTE: The US term is preferred stock.) COMMENT:… …   Dictionary of banking and finance

  • preference shares — See preferred shares …   Euroclear glossary

  • preference shares — preferred stock …   English contemporary dictionary

  • preference shares — A British term for *preferred stock …   Auditor's dictionary

  • preference shares — Same as preferred stock …   Ballentine's law dictionary

  • 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… …   Law dictionary

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