preference shares

6.8

An investment that gives a fixed payment before other company investors and usually has no voting rights

noun

: acciones preferentes

Thirty thousand E.G.O. preference shares.

Examples

Companies often issue preference shares to attract investors who desire steady income from dividends.
Preference shares offer a fixed dividend and priority over ordinary shares for investors seeking stable returns.
Investors in preference shares typically receive their dividends before holders of common stock.

Synonyms

preferred stock

vspreference shares

Specialized

4 5.5

A share that pays owners dividends before common shareholders but usually has no voting rights

provide a fixed dividend paid before ordinary equity

preferred shares

vspreference shares

Specialized

1 5.1

An investment in a company that pays dividends first but usually gives no voting rights

provide a fixed dividend paid before ordinary equity

Antonyms

ordinary shares

5.2

A form of stock giving part of profits and voting rights but no priority for dividends or assets

How Senior

preference shares

6.8

ordinary shares

5.2

Surface Forms

preference shares singular

preference shares plural

Morphology

preference + share

A B1 learner who knows 'preference' (priority/right) and 'share' (unit of company ownership) can infer that these are shares with some kind of priority in rights or payments, so the general idea is predictable from the constituents. However, the specific financial implications (fixed dividend, priority over ordinary shares, usual absence of voting rights) are technical and not fully derivable without prior exposure, so the item is only partially transparent.

Etymology

Preference shares come from preference meaning 'first in line' and shares meaning parts of a company, so these shares are paid before others. So preference shares 'get paid first' from company profits but usually 'have no vote'.