What are preferred shares?

Preferred shares are a type of shares that represent a part of a company‘s capital stock, but which grant their holders certain privileges or advantages over ordinary shares.

For example, holders of preferred shares may have priority in the collection of dividends, in the distribution of equity in the event of the liquidation of the company, or in the conversion of their shares into common shares.

Related concepts

• Shares
• Nominees actions
• Bearer shares
• Shareholder
• Stakes