preference share

(redirected from preference shares)
Also found in: Dictionary, Thesaurus, Legal, Encyclopedia, Wikipedia.
Related to preference shares: Debentures, cumulative preference shares

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.
Enstar's preference share ratings could also be lowered by one notch to reflect higher non-performance risk should Fitch view Bermuda's regulatory environment as becoming more restrictive in its supervision of (re)insurers with respect to hybrid features.
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.
JSC "National Welfare Fund Samruk-Kazyna" owns 0.01% common shares and 51% preference shares of the Bank.
The holders of preference shares (preference shareholders) have the right to receive income--as dividends -before any holders of ordinary shares (ordinary shareholders).
It said that the amount in respect of such reserve, however, keeps on appearing in the financial statement of the company after complete redemption of preference shares.
The news agency got no comment from the Mexican telecoms.Country: NetherlandsSector: IT/Online Services, TelecommunicationsTarget: Royal KPN NVBuyer: Foundation Preference Shares B KPN, America Movil SAB de CVDeal size in USD: 9.5bnType: Corporate acquisition, StakebuildingStatus: Closed, BiddingComment: Deal size refers to America Movil's bid.
"This will bring transparency in raising of funds through non-convertible preference shares and create a market for these securities," says Subir Saha, executive vice president, ICICI Securities.
Preference shares typically pay a fixed dividend, whereas ordinary shares do not.
iLOOKABOUT Corp (TSX V:ILA), a Canada-based visual and data intelligence company serving the hospitality industry, has closed a private placement of Series 1 Preference Shares.
New Delhi, May 07 -- The ordinary shareholders of Porsche Automobil Holding SE, Stuttgart, have declared vis-Ea-vis the company that they will not participate in the dividend distribution for the rump fiscal year 2010 and that the dividend shall be paid out exclusively to the holders of the preference shares.
National Bank of Greece SA (NBG) (NBGr.AT) (NYSE: NBG) (ETE.ATH), Greece's largest lender, has authorised the repurchase of EUR350m worth of preference shares provided as liquidity support by the government, reports Dow Jones.