What are preference shares?

There is another type of share which is issued by companies that are called preference shares.

These shares have a fixed amount of dividend that is paid out each year.

The rate of dividend is usually mentioned in front of the shares.

These shares do not give the same ownership rights as equity shares.

The amount on these shares are paid before the equity shareholders are paid in case of closing down of the company.

Leave a Reply

Your email address will not be published. Required fields are marked *