Types Of Preference Shares
Preference shares means those shares that give the right of preference to individuals over equity shareholders concerning dividends or the company’s assets in case the situation of liquidation arises. Preference shareholders are generally Big Investors, Mutual Funds, or Big Financial Institutions because such shares are issued by the company when they require a large number of funds in less time.
Anubhav rai
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A company generally issues two types of shares: Common Shares and Preference Shares. When companies bring IPO, they raise money by issuing common shares, and shareholders holding common shares are known as common/equity shareholders. Sometimes companies issue special shares to preferred individuals, these individuals are called preferred shareholders.There are different types of preference shares .These different types of preference shares are categorized into participatory, non-participatory, convertible, non-convertible, cumulative, non-cumulative, and so on. Want to know more ? Read our blog
