Dealing in preference shares

May 15, 2012  //  Posted by: Financial advisor  //  Category: Investing tips

Preference shares, sharesShares and the share market can be a very interesting thing for some people. The sheer mystical way in which the money is made to go round from one place t another can be something that can interest a person. One of the things that one can deal with is the preference shares. These are special shares and are different from the common ones. It is recommended that one has a little knowledge about them before they actually start dealing.

Preference shares are usually given to those who are entitles to have dividends at a fixed rate. These shares have less risk in them than the general shares of any organization. Also preference share owners are prioritized over the general share holders when payments are made. However, as with all things, there is a catch. Preference share holders have no voting rights i.e. they do not have any say in the running of the organization at all.

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