Comparison
Investments
Asked by Anonymous
Asked on 23 Oct 2018
I googled it, but still don't really understand what it means
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preference share
a share which entitles the holder to a fixed dividend, whose payment takes priority over that of ordinary share dividends.
Let's say the company is not earning as much, they'll give the promised dividends to those with preference shares and reduced dividend for those with ordinary shares.
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