Preference shares: Difference between revisions
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* [[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'.
