Preference Shares

Preference shares are a type of ownership in a company that gives shareholders priority over ordinary shareholders when it comes to receiving dividends and assets if the company is dissolved. They typically receive fixed dividends before any dividends are paid to ordinary shareholders. However, preference shareholders usually do not have voting rights in company decisions. These shares can be appealing for investors seeking steady income with lower risk, as they are paid first in financial considerations, though they may have limited participation in the company’s growth and profitability beyond fixed dividends.