{"content":[{"text":"Preference Share Meaning","bbox":{"left":0.117686,"top":0.088268,"width":0.33491499999999996,"height":0.03147699999999999}},{"text":"preference shares also known as preference stock, the preference shares are the type of shares \n whose shareholders are given preference in comparison to the other common stockholders when \n it is the time to pay dividends.","bbox":{"left":0.117686,"top":0.167556,"width":0.7541380000000001,"height":0.05506}},{"text":"Similarly, when it is the time for sharing profits derived from the financial year, those \n individuals who own preferred shares are given the returns first and the dividends handed out are \n fixed in nature.","bbox":{"left":0.117686,"top":0.237404,"width":0.7606670000000001,"height":0.05506100000000003}},{"text":"The returns that can be earned from these types of shares is exponentially more than the other \n commonly given out shares.","bbox":{"left":0.117686,"top":0.307442,"width":0.7337680000000001,"height":0.037636}},{"text":"The features of preference shares are","bbox":{"left":0.117686,"top":0.394762,"width":0.32532900000000003,"height":0.022840000000000027}},{"text":"Preference shares are endowed with a lot of features. While some of the features are specially \n designed for only a few types of preferred shares, the rest of the features are common for all \n varieties of preference shares. Some of them include:","bbox":{"left":0.117686,"top":0.467442,"width":0.733844,"height":0.05506}},{"text":"","bbox":{"left":0.147098,"top":0.575778,"width":0.007485999999999993,"height":0.015406999999999949}},{"text":"Maturity - In terms of maturity, the preference shares have the outcome similar to that of \n equity shares. The preference shares are not redeemable and the company is not liable to \n pay the equivalent amount as long as the company is running. Only when the company is \n on the verge of closure, the company needs to pay the preference shareholders after the \n amount has been mutually decided by the management.","bbox":{"left":0.176503,"top":0.572467,"width":0.698964,"height":0.08990900000000002}},{"text":"","bbox":{"left":0.147098,"top":0.715778,"width":0.007485999999999993,"height":0.015406999999999949}},{"text":"Claims on income - The rate of dividend that is to be paid to the preference stockholders \n is fixed and it is decided by the management that the individuals who own preference \n shares have the right to claim dividend before it is given out to the owners of equity \n shares. However, the ultimate decision of whether to invest the dividend or pay it in the \n form of dividend rests with the company.","bbox":{"left":0.176503,"top":0.712467,"width":0.693895,"height":0.089947}},{"text":"","bbox":{"left":0.147098,"top":0.855665,"width":0.007485999999999993,"height":0.015406999999999949}},{"text":"Claims on assets - When the company is about to shut down, the repayment of the funds \n is first done to the individuals who own preference shares than the shareholders of the","bbox":{"left":0.176503,"top":0.852354,"width":0.6918730000000001,"height":0.03763100000000008}}],"images_bbox":[],"images_bbox_not_text_overlap":[]}