preference shares

What are preference shares?

The most common type of share on the stock market are ordinary shares but there is also another type of share called preference shares. These are sometimes referred to as hybrids as these are products which have debt and equity characteristics. Preference shares provide investors with a regular stream of income which means it is similar to the characteristic of a bond. They may also have a fixed maturity date. Preference shares are similar to ordinary shares where the instrument …

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