preference share

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Preference share

Preferred shares of a corporation that have first claim to preferred dividends.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.

Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson

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.
Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005
References in periodicals archive ?
In either case, the preferred share issuer would forgo interest deductions in exchange for a reduced "interest rate" paid in the form of a fixed return on preferred shares.
ASAS Investment Fund will invest all of the proceeds, excluding proceeds from the sale on any preferred shares under the exercise of the overallotment option, from the sale of preferred shares in common shared newly issued by GOL.
In fact, even at the original deduction of 5/2 (250 percent), preferred shares issued by Canadian corporations would have been subject to additional tax of up to eight percent.
Based on an SEC document, Now is authorized to offer up to 10 million redeemable, convertible and nonvoting preferred shares at P100 a share.
BANKING AND CREDIT NEWS-September 1, 2017-VersaBank to pay quarterly dividends on Series 1 & Series 3 preferred shares
Under an agreement signed in August 2005, Inspur issued to Microsoft an aggregate of 234,279,559 preferred shares at an aggregate principal amount of USD25m (equivalent to approximately HKD195m) with Microsoft entitled to receive the dividend at the rate of 6% per annum on the aggregate principal amount of preferred shares, such dividend was agreed to be paid and satisfied wholly by cash.
Further, the earlier redemption of up to 2,000 shares of the NEA series B MuniFund preferred shares and up to 2,000 shares of the NVG series A MuniFund preferred shares has been postponed until a future date.
has obtained board approval to raise as much as P1 billion through an offering of preferred shares, proceeds from which will fund internet services to be rolled out to residential areas and small businesses in Metro Manila.
BANKING AND CREDIT NEWS-June 2, 2017-VersaBank to pay Series 1 & Series 3 preferred share quarterly dividends
The company declared a quarterly dividend of USD0.1597 per Series A First Preferred Share, USD0.1866 per Series B First Preferred Share, USD0.25625 per Series C First Preferred Share, USD0.28125 per Series E First Preferred Share, USD0.265625 per Series F First Preferred Share as well as USD0.25507 per Series H First Preferred Share.
The preferred share issuance is cumulative, nonvoting, nonparticipating, nonconvertible, redeemable and peso-denominated with an issue size of 50 million shares at P100 per share.

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