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 ?
The dividends - both common and preferred shares - will all be payable on October 27, 2017 to shareholders of record at the close of business on October 3, 2017.
The rationale for maintaining both the TPS rules and the taxable preferred share rules was a concern that financial institutions would build a portfolio of preferred shares that were really disguised loans in order to avail themselves of the $500,000 dividend allowance for taxable preferred shares.
Beneficial owners of Series 5 Preferred Shares who wish to exercise their right of conversion should instruct their broker or other nominee to exercise such right before 5:00 p.

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