Types of preference shares in stock exchange

Preference shares include:

Cumulative preference shares
When the company make loss in the first financial year and the company makes profits in the next financial year.The cumulative
shareholders will be paid the first fixed amount of dividend for the
first year when the company made losses plus the fixed amount of
dividend when the company made profits in the second financial year.

Non-cumulative preference shares
The shareholders are only paid when the company makes profit.

Participating preference shares
Since preference shareholders are paid first before the
ordinary shareholders,then participating shareholder will be paid
dividend during the time preference are paid and also during the time
when ordinary are paid.

Non-participating preference shares
Are only paid dividend when preference shareholders are paid.

Convertible preference shares
Are shares which can be converted into equity shares.

Non-convertible preference shares
Are shares which can not be converted into equity.

Redeemable preference shares
Are shares which can be bought back by the company.

Guaranteed preference shares
Dividend are paid whether the company make profits or not.

Comments

  1. pallavi13 February 2020 at 12:45

    Nice Article. Thank you for sharing the informative article with us.
    This post is helpful to many people. stockinvestor.in is a stock related website which provides all stocks related information like new stocks and shares available in the stock market.
    kotak mahindra asset management
    kpit technologies


    ReplyDelete

Post a Comment

Popular posts from this blog

Amount of stocks which you can keep in your business

The total amount of stocks which you as entrepreneur's can keep in your business depends the following major factors. The amount of stocks to keep in the business depends on the purchasing power by the customers,when customers purchases more of product A than product B within the business then as an entrepreneur you should also keep more stocks of product A than product B within your business so that you don't lose making sales when you run short of product A when customers comes and find that product A is missing from your business at any given time. The amount of stocks to keep in your business depends on the amount of cash or finance which the business has,these means that it depends on the amount of  finance which the business has depending on how the business is performing economically.When the business is performing well economically then it will be confidence enough to purchase more stocks at once or in advance within the business. The amount of stock to keep in yo
Read more

Best Adverts

Related links Entrepreneurship How to be successful in entrepreneurship How you can sell goods and services cheaply within your business Expenses which entrepreneurs encounters during their business operation Factors to consider before starting the business How to get business ideas How to display goods/services in the business How to display goods/services in the business How to know that your business is performing well When should entrepreneurs increase price for the goods and services which they sell How to work comfortably within the business Types of business records How to classify business files How to partition offices within the business Advertisements How to effectively advertise goods and services The correct time when business have to advertise their goods and services What to consider before advertising your business goods and services What details should be included when advertising products and services The correct time when business have to adverti
Read more

What is stock broker when buying and selling shares

Stock broker is an agency responsible for purchasing and selling of shares on behalf of the shareholders.Shareholders are individual's or cooperation's that have shares for particular company at stock exchange market. An individual or cooperation that want's to purchase and sell shares at stock market must first register themselves by opening CDA(Certificate of deposit account)with stock brokers. Before opening a CDS account,the individual has to issue two passport size photo of himself/herself to the stock broker before giving essential details about himself/herself to the stock broker. Incase of cooperation,the cooperation must issue to the stock broker details about the company's registration certificate together with all details about the company.CDS account are account used to purchase and sell shares. When individual or cooperation purchases shares,the cost is deducted from the CDS account. When individual or cooperation sells shares,the amount from sell
Read more