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 ?
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.
Holders of Preference Shares will be entitled to receive a cumulative quarterly fixed dividend of 4.
The Companies further announce that they accepted for purchase all such Preference Shares that were validly tendered and not subsequently validly withdrawn as of the applicable Expiration Date.
all or some of the preference shares, the subject of that notice.
Brookfield Properties Corporation announced the completion of its previously-announced Class AAA Series J preference share issue in the amount of C$200 million.
The previously announced Special General Meeting of holders of the Series A Preference Shares (the "Series A Special Meeting") and the previously announced Special General Meeting of holders of the Class B Preference Shares (the "Class B Special Meeting", and together with the Series A Special Meeting, the "Special Meetings") were each held on February 11, 2010.
The Bank has also announced that while its subsidiary's Preference Shares are currently listed on the New York Stock Exchange ("NYSE") it is intended to make application to the NYSE to delist such Preference Shares from the NYSE in order to reduce administrative expenses.
The Series 2 Preference Shares were issued on May 1, 2001 on the amalgamation of certain subsidiaries of CanWest.
The redemption date is October 31, 2000, so that any 5% preference shares outstanding on that date will be redeemed for cash at the redemption price of $34.
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.