The preference shares also known as Prefered Socks or Prefered are a special category of shares which provides a fixed rate of dividend. Preference shares are prefered over common equity shares when it comes to payment of dividend as well as at the time of recovery if the company wind up its operation, however, it doesn’t have the voting rights like common stocks.
In this article, we will focus on some significant types of preference shares in brief. For more detailed information about preference shares follow the link below.