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Define preference share, And explain its features??
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Preference Share :-
It is a share which promise the holder for fixed dividend and the payment takes priority of that ordinary share dividend. It is a long term source for finance in a company.
Difference type of preference share :-
- Cumulative & Non Cumulative shares
- Participation & Non Participation shares
- Convertible & Non Convertible shares
Features of Preference share :-
- No Voting rights
- No Share in earning
- Fixed Dividend
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