preferred shares

Học thuật
Thân thiện
preferred shares

A company issues preferred shares to raise capital.

Definition

Noun (plural, treated as singular or plural in concept): * A class of stock in a corporation: These shares provide their owners (shareholders) with a preferential claim on the company's dividends and assets over common shareholders, but typically do not grant voting rights in corporate matters.

Usage

"Preferred shares" function as a compound noun. The term is used to discuss investment types, corporate finance, and shareholder equity. * The company issued preferred shares to raise capital without diluting the voting power of existing owners. * Income investors often buy preferred shares for their steady dividend payments.

Advanced Usage
  • "Cumulative preferred shares": A type where any missed dividend payments must be paid to preferred shareholders before common shareholders can receive dividends.
    • The trust holds cumulative preferred shares, ensuring any paused dividends are eventually paid.
  • "Callable preferred shares": Shares that the issuing company has the right to repurchase at a predetermined price after a set date.
    • The corporation decided to redeem its callable preferred shares to reduce its cost of capital.
Variants and Related Words
  • Preferred stock: A synonymous term, often used interchangeably with "preferred shares."
  • Preference shares: A common synonym, especially in British English.
  • Common shares / Common stock: The contrasting class of stock, which usually carries voting rights but has a subordinate claim to dividends and assets.
Synonyms
  • Preference shares
  • Preferred stock
Antonyms
  • Common shares
  • Common stock
  • Ordinary shares
Related Idioms/Phrases
  • "To have priority over": This phrase describes the key characteristic of preferred shares regarding dividends and assets.
    • Holders of preferred shares have priority over common shareholders in the event of liquidation.
preferred shares

A company issues preferred shares to raise capital.

Noun
  1. stock whose holders are guaranteed priority in the payment of dividends but whose holders have no voting rights