preference share

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Related to preference stocks: cumulative preference shares

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 maybe split between ordinary shares and preference shares. Ordinary shareholders are entitled to the remaining profits that have been appropriated for the payment of dividends.
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18-3/4 per share on the 4-3/4 percent cumulative convertible (1966 series) preference stock.
25 per share on the cumulative (1985 Series B) preference stock as to those shares which are held outside the company's employee stock ownership plans.