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Monday, 2 April 2012

TYPES OF PREFERENCE SHARES:

TYPES OF PREFERENCE SHARES:
There are many varieties of preference shares , there 5 types of preference shares are as follows:


Cumulative Preference Shares:
If the a company fails to pay the dividends in a fact twelvemonth, then the holders of these share holders will pay in the future date with the carry forwards of dividends to that date.

Non-Cumulative Preference Shares
:
The dividends are payed when the company is in profits. If no profits no dividends are to be paid.

Redeemable Preference Shares:
They hold fast payment schedule where the redemption can be at at payment or par value .

Convertible Preference Shares:
These inter crossed shares provide the choice of converting itself to normal shares at nominative measure and cost.

Participating Preference Shares:
The shareholders get higher dividends, If the profits exceed in certain level in the preference share polices.

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