preference share


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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.

preference share

or

preferred stock

a FINANCIAL SECURITY issued to those individuals and institutions who provide long-term finance for JOINT-STOCK COMPANIES. Preference shares pay a fixed rate of DIVIDEND and are generally given priority over ORDINARY SHARES in receiving dividend. In the event of the company being wound up they also have first claim on any remaining ASSETS of the business after all debts have been discharged. Cumulative preference shares are entitled to be paid any arrears of their dividend before ordinary shares receive any dividends.

Certain preference shares, called Participating Preference Shares, entitle holders not only to a fixed dividend rate but also to anadditional distribution of profit in good trading years. Generally, preference SHAREHOLDERS have no voting fights at company ANNUAL GENERAL MEETINGS, though under the terms of a firm's ARTICLES OF ASSOCIATION they may be granted voting rights where their dividends are in arrears. See SHARE CAPITAL.

preference share

or

preferred stock

a FINANCIAL SECURITY issued to those individuals and institutions that provide long-term finance for JOINT-STOCK COMPANIES. Preference shares pay a fixed rate of DIVIDEND and are generally given priority over ORDINARY SHARES in receiving dividend. In the event of the company being wound up (see INSOLVENCY), they also have first claim on any remaining ASSETS of the business after all debts have been discharged. Generally, preference SHAREHOLDERS have no voting rights at company ANNUAL GENERAL MEETINGS. See also SHARE CAPITAL.
References in periodicals archive ?
10, through the compulsory redemption of not more than 4,900,000 preference shares.
The Preference Shares have been cancelled and the Bank has requested a delisting of the Preference Shares from the Bermuda Stock Exchange and the Euro MTF market of the Luxembourg Stock Exchange, which it expects to be formalised imminently.
In accordance with the terms of the Preference Shares, the number of Weyerhaeuser common shares issuable on conversion of the Preference Shares was determined based on the average of the volume weighted average price of Weyerhaeuser common shares over the 20-trading-day period beginning June 1, 2016 and ending on June 28, 2016.
iv) the announcement dated 18 December 2009 in relation to the issue of the notice dated 18 December 2009 by the Acquiror to the Preference Share Holders on the determined Effective Date, Settlement Date, Preference Share Offer Price and Preference Share Offer being declared unconditional in all respects;
The total number of shares in SAS will amount to 336,000,000 after the issue, of which 329,000,000 are common shares and 7,000,000 are preference shares.
Carnegie Investment Bank acted as Balder's financial adviser and as lead manager and sole book-runner for the preference share issue.
Preference Share Holders who wish to accept the Preference Share Offer but have not done so should refer to the CRPS Offer Letter and follow the procedures set out therein.
The Preference Share offering is expected to close on November 13, 2012.
Preference Share Holders should note that the Company does not currently have funds legally available to make payment on any CRPS required at the option of the Preference Share Holders to be redeemed by the Company pursuant to the occurrence of a Fundamental Change (as defined in the Articles of Association of the Company (the "Articles")) on 17 December 2009 being the Books Closure Date ("Fundamental Change Redemption") as notified to you in the Notice of Fundamental Change issued by the Company on 24 December 2009; accordingly, Preference Share Holders should give due consideration to accepting the Preference Share Offer made by the Acquiror to acquire all the CRPS in issue from the Preference Share Holders on the terms and conditions set out in the CRPS Offer Letter.
With the Scheme becoming effective on 18 December 2009, the Acquiror wishes to announce that the Preference Share Offer has become and is hereby declared unconditional in all respects on the date of this Announcement.
On and after the redemption date, the Series A Preference Shares will no longer be deemed to be outstanding, dividends on the Series A Preference Shares will cease to accrue, and all rights of the holders of the Series A Preference Shares will cease, except for the right to receive the redemption price, without interest thereon, upon surrender of the Series A Preference Shares.
When available, a written prospectus for the perpetual non-cumulative preference share offering meeting the requirements of Section 10 of the Securities Act of 1933, as amended, may be obtained from Lehman Brothers or UBS Investment Bank by contacting Lehman Brothers, c/o ADP Financial Services, Prospectus Fulfillment, 1155 Long Island Avenue, Edgewood, NY 11717, email: monica_castillo@adp.