Preference shares: Difference between revisions
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A form of capital with preferred rights over ordinary shares or common stock. | 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. | 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 | 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]] | |||
* [[Return on shareholders funds]] | |||
* [[Share]] | * [[Share]] | ||
* [[Tax shield]] | |||
* [[Tier 1]] | |||
* [[Venture capital]] | * [[Venture capital]] | ||
* [[Waterfall]] | |||
[[Category:Accounting,_tax_and_regulation]] | |||
Revision as of 20:59, 11 March 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'.
