The value of investments can fall as well as rise, and you may get back less than you invested. Past performance is no guarantee of future results.

Preference shares, or preferred stock, are seen as more attractive to investors than common stock.

Preference shares definition

Preference shares, or preferred stock, are seen as more attractive to investors than common stock.

Preferred shares are issued to shareholders with a stated dividend rate, and the holders are entitled to dividends before common shareholders, if a payout is made at all. Similarly, if a company goes into liquidation, for example, the preferred shareholders are entitled to claims over any remaining assets left before common shareholders are.

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