Preference shares: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Administrator (CSV import) |
imported>Doug Williamson m (Spacing 21/8/13) |
||
| Line 1: | Line 1: | ||
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. | ||
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 can have some characteristics of debt and of equity. As such they could be a form of hybrid instrument. | This form of capital can have some characteristics of debt and of equity. As such they could be 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. | ||
== See also == | == See also == | ||
| Line 9: | Line 12: | ||
* [[Ordinary shares]] | * [[Ordinary shares]] | ||
* [[Venture capital]] | * [[Venture capital]] | ||
Revision as of 13:08, 21 August 2013
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 can have some characteristics of debt and of equity. As such they could be a form of hybrid instrument.
Preference shares are frequently used by venture capital investors as a medium for their investment.
