Preference Shares

What is a share?
A share represents a unit of ownership in a company, giving the shareholder a claim on part of the company’s assets and earnings. The value of shares can ch...
Mon, 22 Jul, 2024 at 4:02 PM
What is a preference share?
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 shareh...
Thu, 25 Jul, 2024 at 2:08 PM
How do preference shares differ from normal shares or equities?
Dividend Priority:  Preference shares receive dividends before common shares, ensuring that preference shareholders are paid first. Fixed Dividend:  P...
Mon, 22 Jul, 2024 at 4:14 PM
What are the different types of preference shares?
These are the different types of preference shares: Cumulative A cumulative preference share means that if the company is unable to pay the dividend at an...
Mon, 22 Jul, 2024 at 4:10 PM
How risky are preference shares as an investment?
While all investments carry some level of risk, preference shares are generally considered less risky than ordinary shares due to their fixed dividend payme...
Mon, 22 Jul, 2024 at 4:19 PM
What is the dividend rate?
The dividend rate is the annual return payable to shareholders as a percentage of the nominal/face value of their holdings.  As an example, the Water Fi...
Mon, 22 Jul, 2024 at 4:18 PM
How often will I receive a dividend?
For Water Financial Preference Shares, investors will receive dividends every month.
Mon, 22 Jul, 2024 at 7:14 PM
Who is the ideal preference share investor?
Preference Shares are ideal for investors seeking a reliable dividend stream and a lower-risk investment compared to ordinary shares. Each potential Inv...
Mon, 22 Jul, 2024 at 4:22 PM
How are the dividend payments calculated?
Initial Dividend Rate Determination  On the date the preference shares are issued, the Prime rate is recorded and multiplied by 87% to determine the initia...
Mon, 22 Jul, 2024 at 7:39 PM
What is the term of the investment?
The investment term for Water Financial Preference Shares is 5 years, with the shares being callable by the issuer after 3 years. This means the company ha...
Mon, 22 Jul, 2024 at 7:18 PM
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