129 Preference shares

Preference shares

Preference shares are issued to attract investors who want a steady return on their capital with minimal or no risk in their business investment. Preference shareholders usually received a predetermined dividend amount and get preference over other classes of shareholders. As the name implies, preference shareholders enjoy priority to dividends or return of capital on a winding up or both. Preference shares are issued with predetermined dividends amount and are often without voting rights.


BCS 202/05 Corporate Compliance Management Copyright © 2011 by Wawasan Open University. All Rights Reserved.


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