fixed rate preference shares
Shares issued wholly for new consideration with no conversion rights or rights to acquire further shares or securities, which carry dividends of a fixed amount or fixed rate per cent of the nominal value. The dividends (plus any amount paid on redemption) must represent no more than a reasonable commercial return on the consideration for which the shares are issued.
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Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

Look at other dictionaries:

  • stepped preference shares — are preference shares whose fixed percentage dividend will rise annually at a pre set rate …   Financial and business terms

  • preference share — a special type of share in a company, which has the characteristic that it confers an entitlement to a specified percentage rate of dividend that is payable in priority to the claims of ordinary shareholders. A company s share capital may be… …   Law dictionary

  • preference — A legal term used in bankruptcy to describe a transaction deemed to have occurred under circumstances favorable to the creditor that benefited from the transaction. This provision is intended to protect unsecured creditors. Under the U.S.… …   Financial and business terms

  • preference share — A share in a company yielding a fixed rate of interest rather than a variable dividend. A preference share is an intermediate form of security between an ordinary share and a debenture Preference shares usually confer some degree of ownership of… …   Big dictionary of business and management

  • preference share — /ˈprɛfrəns ʃɛə/ (say prefruhns shair) noun a share which ranks before ordinary shares in the entitlement to dividends, usually at a fixed rate of interest, and usually converting into an ordinary share at a future date. Also, US, preferred stock …   Australian English dictionary

  • ordinary shares — carry the residual economic value of a company. They carry rights to distribution of profits through dividends, to the surplus assets of a company on a winding up and to votes at general meetings of the company. Easyform Glossary of Law Terms. UK …   Law dictionary

  • hurdle rate — / hɜ:d(ə)l reɪt/ noun 1. the rate of growth in a portfolio required to repay the final fixed redemption price of zero dividend preference shares 2. a minimum rate of return needed by a bank to fund a loan, the rate below which a loan is not… …   Dictionary of banking and finance

  • participating preference share — A preference share entitled to a fixed rate of dividend and a further share in the profits of a company, for example after the ordinary shares have received a certain percentage …   Accounting dictionary

  • adjustable-rate preferred stock — ARP Stock or cumulative preference shares in the USA whose dividends are linked to Treasury Bill interest rates. Minimum and maximum rates are specified by the application of a collar Convertible adjusted rate preferred stock can be converted to… …   Big dictionary of business and management

  • Interest rate — Finance Financial markets Bond market …   Wikipedia

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