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shares
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what is the difference between an ordinary share and preference shares
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For more on marking an answer as the "Best Answer", please visit our FAQ.Here in the U.S., they are a special class of shares in a company that could have a variety of features. Preferred shares often have a fixed dividend rate, always rank in preference to common shares and are convertible into common shares upon the occurrence (or non-occurrence) of future events. Preferred shares can be voting or non-voting, and usually do not participate in growth in equity in the same manner that common shares do. (Source: Manitoba Financial )...
Ordinary shareholders "own" the company.
Preference Shares now have to be shown as a Liability (creditor) in Company accounts.
Effictively they are viewed as fixed rate loans as the dividend has to be paid if there are reserves there to pay from.
Some Pref shares have a stipulance that if the divi cant be paid one year then the amount that should have been paid should be carried forward, so twice the amount be paid the nextt year.
Preference Shares now have to be shown as a Liability (creditor) in Company accounts.
Effictively they are viewed as fixed rate loans as the dividend has to be paid if there are reserves there to pay from.
Some Pref shares have a stipulance that if the divi cant be paid one year then the amount that should have been paid should be carried forward, so twice the amount be paid the nextt year.