Preference shares and Preferred stock: Difference between pages

Revision as of 13:07, 21 August 2013

Stock that is issued with a stated dividend that must be paid before dividends to common stock holders.

Preferred stock does not usually have voting rights.

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-A form of capital with preferred rights over ordinary shares or common stock.
+Stock that is issued with a stated dividend that must be paid before dividends to common stock holders.
-These rights may be a preferred right to a dividend or to repayment in the event of winding up of the business.
+Preferred stock does not usually have voting rights.
-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.
 == See also ==
 * [[Common stock]]
-* [[Ordinary shares]]
-* [[Venture capital]]