Please explain the preference shares in details | Candider
Please explain the preference shares in details
28th Jan 2020 12:57 am
Following result is obtained by our expert’s opinion:
There are 2 types of shares equity and preference shares. Both are the part of company’s capital, in case of preference shareholder gets fixed percentage of dividend and also dividend will be given to in preference to other shareholders. But preference shareholder doesn’t enjoy rights of equity shareholders like voting rights and others.
Companies find issuing preference shares very expensive source of investment.