Preferential Shares
/ˌprɛf.ərˈɛn.ʃəl ʃɛərz/
Definitions
- (n.) Shares in a company that have preferential rights over ordinary shares, often regarding dividends and capital repayment.
The holder of preferential shares received dividends before other shareholders.
Forms
- preferential share
Related terms
See also
Commentary
Preferential shares often have fixed dividends and priority on assets, useful in corporate financing to attract investment without diluting control.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.