Preference Shares (Noun)
Meaning
Stock whose holders are guaranteed priority in the payment of dividends but whose holders have no voting rights.
Classification
Nouns denoting possession and transfer of possession.
Examples
- The company issued preference shares to attract investors who were looking for a stable source of income.
- Preference shares are often used by companies to raise capital without diluting the voting power of existing shareholders.
- The investor opted for preference shares over common shares because they offered a higher dividend yield.
- The company's preference shares were traded on the stock exchange at a premium due to their attractive dividend payout.
- The startup issued preference shares to its venture capital investors as part of its funding agreement.