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.
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.