Admission Open for 2019-20
SUBJECT : Financial Management
AUTHOR : Mohammed Arif pasha
PUBLISHED ON : 19/12/17
NUMBER OF PAGES : ( 8 Pages)
PRICE : Rs 4.8

Preference shares are those shares, which have the preference over the equity shares as far as the dividend and refund of the capital is concerned. Preference shares are a hybrid security, which have the characteristics of both the debt and equity. Legally preference shares resemble a bond as it has a prior claim on the assets of the firm at the time of liquidation. Similarly the holders of preference shares receive dividend as in the case of equity shares. However it does not enjoy strong legal position. Generally corporations do not make use of this security as a means of raising capital.