# 3ABCDEFGHIJKLMNOPQRSTUVWYZ

Preference Share

Preference or preferred shares entitle a holder to a prior claim on any dividend paid by the company before payment is made on ordinary shares, although such dividends are normally fixed. Preference shares are normally repayable at par value in the event of liquidation. They do not usually carry voting or pre-emptive rights.

See also: Convertible Preference Share