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Preference Share
(redirected from Preferred stocks)

   Also found in: Dictionary/thesaurus, Legal, Encyclopedia, Wikipedia 0.01 sec.
Preference share
Preferred shares of a corporation that have first claim to preferred dividends.

Preferred Stock
Stock in a publicly-traded company without voting rights, but otherwise with more rights than common shares. Preferred stocks receive dividends before common shares and sometimes have guaranteed dividends, while common shares only receive the leftovers. Preferred stocks also have a prior claim on capital in the event of liquidation; if the company is liquidated, all preferred shareholders must be paid off before a single common shareholder. Some preferred stocks are convertible, which means they can be changed into common shares at a certain ratio so that even preferred shareholders without voting rights have the possibility of gaining them. Preferred stocks tend not to appreciate as fast as common stocks.


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Compared to bonds, preferred stocks offer tax advantages to certain investors that make them worthwhile.
The common and preferred stocks of the company trade on the New York Stock Exchange with the symbols NHI and NHIPr respectively.
The common and preferred stocks of the company trade on the New York Stock Exchange with the symbols NHI and NHIPr respectively.
 
 
 
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