preferred shares
Học thuậtThân thiện
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.
Noun
- stock whose holders are guaranteed priority in the payment of dividends but whose holders have no voting rights