Preference Share Capital

preferred stock

Preference Share Capital Preference Share Capital What is Preference share? Preference shares are the share of the company which is issued to raise the capital.¬†Preference Shareholders enjoy Priority, both as regards to the payment of a fixed amount of dividend and also towards repayment of capital on winding up of the company. Preference share capital is a hybrid form of financing with some characteristics of equity capital and some that of debt capital. It is like an equity because of preference dividend, like equity dividend, is not a tax-deductible payment.…

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