Preference shares: Difference between revisions

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These rights may be a preferred right to a dividend or to repayment in the event of winding up of the business.
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 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.
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== See also ==
== See also ==
* [[Common stock]]
* [[Common stock]]
* [[Hybrid]]
* [[Ordinary shares]]
* [[Ordinary shares]]
* [[Preference]]
* [[Preference dividend]]
* [[Preferred stock]]
* [[Return on shareholders funds]]
* [[Share]]
* [[Share]]
* [[Tax shield]]
* [[Tier 1]]
* [[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