Preference Shares

Business, Legal & 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.

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.

Synonyms For Preference Shares

preferred stock, preferred shares, preference share, preferred share, preferential shares

Cite Term

To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
Modern Language Association (MLA):
Preference Shares. Payroll & Accounting Heaven Ltd. May 25, 2020
Chicago Manual of Style (CMS):
Preference Shares. Payroll & Accounting Heaven Ltd. (accessed: May 25, 2020).
American Psychological Association (APA):
Preference Shares. Retrieved May 25, 2020, from website:

Definition Sources

Definitions for Preference Shares are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 6th January, 2020 | 6 Views.