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