preference share

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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 ?
For shareholders who have their preference shares registered to a nominee with a bank or other nominee, payment will be made according to each respective nominee's routines.
4 million in annual payments by Butterfield for Preference Share dividends and the guarantee fees payable to the Government of Bermuda, which will be accretive to earnings going forward.
Preference Shares were previously not included in the company's calculation of diluted share count because they were anti-dilutive.
Sebi has recently allowed listing of non-convertible redeemable preference shares, that is, those that are not convertible into equity shares and are redeemed at maturity.
iii) the announcement dated 16 December 2009 in relation to the issue of the notice dated 16 December 2009 by the Acquiror to the Preference Share Holders on the extension of the Offer Period to 15 January 2010;
SAS' CEO Rickard Gustafson says: "SAS' issue of preference shares has generated considerable interest and we are honoured by the support that the capital markets have shown SAS once again.
Each preference share entitles to a quarterly dividend of SEK5 and carries one-tenth of a voting right.
The Preference Share offering is expected to close on November 13, 2012.
Preference Share Holders should note that the Company does not currently have funds legally available to make payment on any CRPS required at the option of the Preference Share Holders to be redeemed by the Company pursuant to the occurrence of a Fundamental Change (as defined in the Articles of Association of the Company (the "Articles")) on 17 December 2009 being the Books Closure Date ("Fundamental Change Redemption") as notified to you in the Notice of Fundamental Change issued by the Company on 24 December 2009; accordingly, Preference Share Holders should give due consideration to accepting the Preference Share Offer made by the Acquiror to acquire all the CRPS in issue from the Preference Share Holders on the terms and conditions set out in the CRPS Offer Letter.
As of today there are 6,000,000 of the Series A Preference Shares outstanding.
Lehman Brothers and UBS Investment Bank are acting as joint book-running managers for the perpetual non-cumulative preference shares offering.
Further, due to a structural feature which caps interest distributions to the preference shares at 14% per annum and amortizes the class C notes with the excess spread, the class C notes have paid down by 60.