Preference shares: Difference between revisions

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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.
A form of capital with preferred rights over ordinary shares or common stock.   


This form of capital can have some characteristics of debt and of equity.  As such they could be a form of hybrid instrument.
 
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.
Preference shares are frequently used by venture capital investors as a medium for their investment.
Also known as 'preferred shares'.


== See also ==
== See also ==
* [[Common stock]]
* [[Common stock]]
* [[Hybrid]]
* [[Ordinary shares]]
* [[Ordinary shares]]
* [[Preference]]
* [[Preference dividend]]
* [[Preferred stock]]
* [[Return on shareholders funds]]
* [[Share]]
* [[Tax shield]]
* [[Tier 1]]
* [[Venture capital]]
* [[Venture capital]]
* [[Waterfall]]


[[Category:Accounting,_tax_and_regulation]]

Latest revision as of 07:42, 27 June 2022

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'.


See also