Preference shares: Difference between revisions
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* [[Common stock]] | * [[Common stock]] | ||
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* [[Non-equity security]] | |||
* [[Ordinary shares]] | * [[Ordinary shares]] | ||
* [[Preference]] | * [[Preference]] | ||
Revision as of 12:15, 10 November 2025
A form of capital with preferred rights over ordinary shares or common stock.
These rights may be a preferred right to a dividend or to repayment in the event of winding up of the business.
This form of capital has some characteristics both of debt and of equity. As such it is a form of hybrid instrument.
Preference shares are frequently used by venture capital investors as a medium for their investment.
Also known as 'preferred shares'.
