Define: Preference Shares

UK Accounting Glossary

Definition: Preference Shares


Quick Summary of Preference Shares


Shares in a company which give the holder a preference (although not an automatic right) to receive a dividend before any ordinary share dividend is declared.



What is the dictionary definition of Preference Shares?

Dictionary Definition



Full Definition of Preference Shares




Examples of Preference Shares in a sentence


Ordinary or preference shares may be issued.
Zero dividend preference shares are being issued at a ratio of 30 for every 70 ordinary shares.
You can put me down for forty Preference shares.
The preference shares are redeemable at par value six years after their date of issue.
Venture capitalists often demand ordinary shares as well as loan capital and preference shares in return for their investment.
Currently there is no requirement to recognise minority interests in respect to the preference shares.
The transferable preference shares refer to those convertible into ordinary shares.



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Preference Shares. PayrollHeaven.com. Retrieved July 21, 2019, from PayrollHeaven.com website: https://payrollheaven.com/define/preference-shares/

Definition Sources


Definitions for Preference Shares are sourced/syndicated from:

  • Oxford Dictionary Of Economics
  • BusinessDictionary.com
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 23rd December 2018.