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.

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. November 21, 2019
Chicago Manual of Style (CMS):
Preference Shares. Payroll & Accounting Heaven Ltd. (accessed: November 21, 2019).
American Psychological Association (APA):
Preference Shares. Retrieved November 21, 2019, from website:

Definition Sources

Definitions for Preference Shares are sourced/syndicated from:

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