A preference share is a type of equity security that provides a fixed dividend based on a benchmark interest rate, such as the prime lending rate, to shareholders before any dividends are paid to common shareholders. 

• Unlike ordinary shares, preference shareholders typically are not able to vote at annual general meetings, however they do get to have their say in the event that the company is being wound down and assets liquidated to settle obligations.

Preference shareholders have a higher claim on the company's assets and earnings than common shareholders, especially in the event of liquidation. Dividends on Preference Shares must be paid when the company declares an ordinary dividend.

The value of preference shares are generally influenced by interest rates and the company's creditworthiness rather than the company's share price performance.