Preferred shares

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Preferred shares

Preferred shares give investors a fixed dividend from the company's earnings and entitle them to be paid before common shareholders. See: Preferred stock.

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.
References in periodicals archive ?
Because of the potential double tax burden under the Act, however, preferred shares are an expensive--even a last resort--means of raising capital in Canada.
20, 1993, all 313,438 of the outstanding preferred shares at the $50 (Canadian) redemption price.
Fitch affirms Canada Life Financial Corporation's IDR at 'AA-' and outstanding preferred shares ratings at 'A'.
80 cumulative redeemable first preferred shares in the amount of 70 cents per share.
00 per Preferred Share (the liquidation preference) plus accumulated and unpaid dividends to the redemption date of $0.
The redemption was made pro rata from each Preferred Shareholder based on the respective number of Preferred Shares held by each such holder on the redemption date.
10% Series A-1 Cumulative Preferred Shares ("Series A-1 Preferred Shares") and 7.
The right to convert preferred shares into common shares will expire at the close of business on Sept.
The conversion of the Series C preferred shares will eliminate the preferred stockholder's right to receive a preferential distribution and cumulative dividend.
The conversion of the Series B preferred shares will eliminate the preferred stockholder's right to receive a Series B preferential distribution and Series B cumulative dividend.
The Series B Convertible Preferred Shares will receive dividends at the rate of 10% per annum, payable quarterly, and be redeemed by the Company on February 1, 2008.
The Preferred Shares are callable at any time at the liquidation preference of $25.

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