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1.what is the difference between an ordinary share and preference shares
2.For instance if a company's share is 75p per share before floating preference share for 50p per share.After a year the share value rose to 150p,as a preference share holder can i sell my shares at 150p?
2.For instance if a company's share is 75p per share before floating preference share for 50p per share.After a year the share value rose to 150p,as a preference share holder can i sell my shares at 150p?
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Ordinary shares and preference shares are two entirely different things and have different prices.
Preference shares pay a fixed dividend, although it can be skipped if the company is in touble. It is the first dividend a company will pay - hence the term preference. Their price doesn't normally fluctuate very much.
Ordinary shares pay (after the preference shareholders have been paid) whatever dividend the company can afford - therefore it can fluctuate quite a lot - as can the share price.
I don't really understand your question 2., but I suspect not. The ordinary share value might well have risen to 150p, but the preference share value won't have - it won't vary much from 50p.
What it boils down to is you cannot sell your preference shares at the ordinary share price. You sell them at their own price.
Preference shares pay a fixed dividend, although it can be skipped if the company is in touble. It is the first dividend a company will pay - hence the term preference. Their price doesn't normally fluctuate very much.
Ordinary shares pay (after the preference shareholders have been paid) whatever dividend the company can afford - therefore it can fluctuate quite a lot - as can the share price.
I don't really understand your question 2., but I suspect not. The ordinary share value might well have risen to 150p, but the preference share value won't have - it won't vary much from 50p.
What it boils down to is you cannot sell your preference shares at the ordinary share price. You sell them at their own price.
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