Disclaimer & Affiliate disclosure: The information provided on this post is for general informational purposes only and should not be considered financial or legal advice. Always consult with a financial advisor or attorney before making any financial decisions. Some of the links in this post are affiliate links, meaning, at no additional cost to you, we will earn a commission if you click through and make a purchase.
Preference shares, also known as preferred stocks, are stock issued by a company that pays dividends to its shareholders.
Preference shares are typically issued to raise cash for a corporation, which is referred to as preference share capital.
Preferred shareholders are part-owners of a company, but they do not have voting rights, unlike common shares.
Preference shares have a preferential right when it comes to dividend distribution of dividends or during the liquidation of a company.
