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.
+Preferred stock does not usually have voting rights.
-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 ==
 * [[Common stock]]
-* [[Hybrid]]
-* [[Ordinary shares]]
-* [[Preference]]
-* [[Preference dividend]]
-* [[Return on shareholders funds]]
-* [[Share]]
-* [[Tax shield]]
-* [[Tier 1]]
-* [[Venture capital]]
-* [[Waterfall]]
-[[Category:Accounting,_tax_and_regulation]]