Preference shares: Difference between revisions

From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson
(Remove surplus wording.)
imported>Doug Williamson
(Add link.)
Line 19: Line 19:
* [[Return on shareholders funds]]
* [[Return on shareholders funds]]
* [[Share]]
* [[Share]]
* [[Tax shield]]
* [[Tier 1]]
* [[Tier 1]]
* [[Venture capital]]
* [[Venture capital]]


[[Category:Accounting,_tax_and_regulation]]
[[Category:Accounting,_tax_and_regulation]]

Revision as of 17:22, 10 January 2021

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