what is Preference shares

Posted on 02-04-2016        By ADMIN

what is Preference shares

Meaning ofPreference shares:

Preference shares are shares, which havepreferential rights (i.e., first priority or

 preference over other kinds ofshares) in respect of payment of dividend during

 the existence of the company,and also in respect of repayment or refund of share

 capital in the event of thewinding up of the company. In fact,it is because of their

 preferential rights in respect of the payment ofdividend and repayment of 

capital that these shares are 1 mown as preferenceshares.

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