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 ?
The Bank believes that the issuance of the Preference Shares will strengthen its capital base, improve its capital structure, to meet the increased capital requirements imposed by the banking regulatory authorities and meet the needs of the sustainable development of the Bank, and thus has great significance in promoting healthy and sustainable development of the Bank.
--$400 million 7.0% fixed-to-floating rate preference shares, series D 'BB+';
Preference Shares were previously not included in the company's calculation of diluted share count because they were anti-dilutive.
Keywords: equity instrument, ordinary shares, common stock, dividends, preference shares, cumulative preference shares, treasury shares, par value, outstanding capital, authorized capital, puttable instrument
Halifax 6.125 per cent preference shares were converted to HBOS 6.475 per cent preference shares on June 24, 2005.
The Series J Preference Shares will commence trading on the Toronto Stock Exchange on April 30, 2004 under the symbol BPO.PR.J.
A: He owns 14,599,800 ordinary shares, but no preference shares. That means he has about 51 per cent of the voting shares, and overall control of the club.
Northam has reached agreement with Coronation Asset Management Proprietary Limited, acting as an investment manager on behalf of its clients ('Coronation'), pursuant to which Northam will acquire 341 455 Zambezi preference shares from Coronation on Tuesday, 6 August 2019, at a price of R70.69 per Zambezi preference share, representing the face value of such shares, for a total cash consideration of approximately R24.1 million ('further transaction').
The company is offering the preference shares at a subscription price of USD1.00 per share, with a minimum offering of USD500,000 and a maximum offering of USD750,000.
The only guidance given on the preference share rights is written on the back of the certificates.
The Corporation has designated the common share dividend and preference share dividends as eligible dividends for federal and provincial dividend tax credit purposes.
Reportedly, the board of directors of Victoria Park has resolved to propose an Extraordinary General Meeting to resolve on a redemption of all 1,032,047 preference shares, in accordance with section 5.4 of the Articles of Association, for a redemption price of SEK300 per preference share.