preference share
a special type of share in a company, which has the characteristic that it confers an entitlement to a specified percentage rate of dividend that is payable in priority to the claims of ordinary shareholders. A company's share capital may be split between ordinary shares and preference shares. Ordinary shareholders are entitled to the remaining profits that have been appropriated for the payment of dividends.

Collins dictionary of law. . 2001.


preference share
Generally, shares which rank ahead of other shares either as to dividends or capital or both, but which carry limited voting rights. They are normally fixed-income shares; they do not usually participate in the success of the company and are therefore generally a less risky form of investment than ordinary shares. The exact nature of preference shares and the rights attaching to them are set out in the company's articles of association.
Related links

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

Look at other dictionaries:

  • preference share — preferred shares of a corporation that have first claim to preferred dividends. Bloomberg Financial Dictionary A type of share that pays a fixed percentage dividend. Preference shareholders come before the ordinary shareholder when it comes to… …   Financial and business terms

  • preference share — A share in a company yielding a fixed rate of interest rather than a variable dividend. A preference share is an intermediate form of security between an ordinary share and a debenture Preference shares usually confer some degree of ownership of… …   Big dictionary of business and management

  • preference share — A share in a company that is entitled to a fixed percentage dividend rather than a variable dividend; for example, a 6% preference share pays a dividend of 6% per annum. If the company goes into liquidation, the preference shares are paid out… …   Accounting dictionary

  • preference share — (or stock) (N. Amer. preferred share or stock) noun a share which entitles the holder to a fixed dividend whose payment takes priority over that of ordinary share dividends …   English new terms dictionary

  • preference share — /ˈprɛfrəns ʃɛə/ (say prefruhns shair) noun a share which ranks before ordinary shares in the entitlement to dividends, usually at a fixed rate of interest, and usually converting into an ordinary share at a future date. Also, US, preferred stock …   Australian English dictionary

  • preference share — One giving its holder a preference, either as to receipt of dividends, or as to payment in case of winding up, or both. In re Schaffer Stores Co., 224 App.Div. 268, 229 N.Y.S. 735, 739 …   Black's law dictionary

  • preference share — Brit. a share of preferred stock. [1835 45] * * * …   Universalium

  • preference share — Brit. a share of preferred stock. [1835 45] …   Useful english dictionary

  • Preference Share — ⇡ Vorzugsaktie …   Lexikon der Economics

  • preference share capital — Share capital consisting of preference shares. Under Financial Reporting Standard (FRS) 4, Capital Instruments, preference share capital was classified as non equity share capital. However, FRS 4 has now been replaced by FRS 25 (International… …   Accounting dictionary

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