Zero Dividend Preference Share


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Zero Dividend Preference Share

A preferred share that does not pay a dividend. Rather, the shareholder receives an agreed-upon, fixed amount when he/she redeems the share with the issuer. As with all preferred shares, in the event of liquidation, holders are entitled to receive proceeds from liquidation before any common shareholders.
References in periodicals archive ?
The interest rate on the new loan package would be "significantly lower" than the original gross redemption yield, or yield to maturity, on the maturing zero dividend preference shares.
2009 also saw something of a renaissance for zero dividend preference shares (zeros), with five investment companies raising money through zeros.
Another way to invest in the stock market but avoid share slumps is to try zero dividend preference shares.
Its ordinary shares are quoted on the AIM and its issued zero dividend preference shares are listed and traded on the main market of the London Stock Exchange (tickers GLIF and GLIS and GLIZ (2019 ZDP)).
In January, 2000, through a firm of brokers I bought 5,000 Geared Income zero dividend preference shares for pounds 5,325.
An split investment trust like Britannic's global income is made up of ordinary income shares and zero dividend preference shares.
Contrary to popular opinion, these investments, zero dividend preference shares (zeros) are not entirely risk free and details on them can be difficult to ascertain.
Separately, EFM manage two split trusts, but neither has been mentioned among those that could have difficulty honouring commitments to holders of zero dividend preference shares.