expail any four preference share
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Answer:
CONVERTIBLE AND NON-CONVERTIBLE PREFERENCE SHARES
Convertible preference shares have a similar concept of convertible debentures. These shares possess an option or right whereby they can be converted into an ordinary equity share at some agreed terms and conditions.
Non-convertible simply does not have this option but has all other normal characteristics of a preference share.
REDEEMABLE AND IRREDEEMABLE PREFERENCE SHARES
A redeemable preference share is very commonly seen preference share which has a maturity date on which date the company will repay the capital amount to the preference shareholders and discontinue the dividend payment thereon.
Irredeemable preference shares are little different from other types of preference shares. It does not have any maturity date which makes this instrument very similar to equity except that the dividend of these shares is fixed and they enjoy priority in payment of both dividend and capital over the equity shares. Since there is an absence of maturity, they are also known as perpetual preference share capital.
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