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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