preference share(redirected from preference stocks)
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Related to preference stocks: cumulative preference shares
preference sharea 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.
Collins Dictionary of Law © W.J. Stewart, 2006