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.