What is preference shares when purchasing shares at stock market exchange

Preference shares are shares in which the shareholders of those shares gets a fixed percentage of dividend.Whether the company makes more profits or less profits the dividend which the preference shareholder will get is fixed unlike in ordinary shareholders whose their dividend can be high incase the company makes more profits.

Preference shareholders do not have a voting rights,these means that preference shareholders can not vote during annual general meetings or any other official meetings held by the company whom the shareholders have shares in them(company).

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