Preference Shares
5paisa Research Team
Last Updated: 01 Jul, 2024 04:21 PM IST

Content
- What Are Preference Shares?
- Types of Preference Shares
- Features of Preference Shares
- Why Should You Consider Investing in Preference Shares?
- What are the risks associated with these Preference Shares?
- Conclusion
Preferred shares sit between regular stocks and bonds, providing firms and their investors with ample benefits. The distribution of these shares is much higher than common stocks. Their popularity is because only preferred shareholders own this particular stock. Companies can raise more capital using preferred shares because some investors demand more regular dividends and better bankruptcy protections than common shares provide.
As the global bear market continues, more and more investors are turning to preferred stock for high long-term returns while more and more companies are launching different types of preferred stock on the market.
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