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Preference share |
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Preference sharePreferred shares of a corporation that have first claim to preferred dividends.Preference share Similar MatchesRedeemable preference sharesRedeemable preference sharesPreference shares which the issuing company reserves the right to redeem. The shares may, or may not have a specific redemption date or dates. Revealed preferenceRevealed preferenceThe use of the value of expenditure to "reveal" the preference of a consumer or group of consumers for the bundle of goods they purchase compared to other bundles of equal or smaller value. Used by Samuelson (1939) and Ohyama (1972), especially, to examine the gains from trade. Preference sharesPreference sharesShares in a company which give their holders an entitlement to a fixed dividend but which do not usually carry voting rights. The important difference between preference and ordinary shares are:The dividend on ordinary shares is uncertain and variable (high when the company does well, poor or non-existent when it does badly). Preference shareholders get a fixed dividend which, if not paid, usually accrues until it can be.Each ordinary share usually carries a vote. Preference shares do not usually carry a vote unless dividends fall into arrears.In the event of a winding up, preference shares are usually repayable at par value, and rank above the claims of ordinary shareholders (but behind bank and trade creditors).Preference shares may be issued with the right of conversion into ordinary shares. These are called convertibles. Loan Preference PrincipleLoan Preference PrincipleThe theory that a covered loan is less expensive when its cost is calculated in one currency, it will also be less expensive in all other currencies. Cumulative preference sharesCumulative preference sharesWhen a company fails to pay a dividend, holders of cumulative preference shares are entitled to receive this missed payment when a dividend is next declared. This rule is cumulative and they are also entitled to the current dividend provided sufficient cash is available. These payments receive priority over the claims of ordinary shareholders. Further SuggestionsTariff preferenceparticipating preference shares Preference stock Preferences Liquidity preference hypothesis Tax preference item Identical preferences Preference for variety Generalized System of Preferences stepped preference shares Homothetic preferences Weak axiom of revealed preference Community preferences Involuntary liquidation preference |
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