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Saturday, March 12, 2011

Types of Preference Shares

In general, there are four different types of preference shares (preferred stocks):

1) Cumulative and Non cumulative shares:
Cumulative preference shares give the right to the preference shareholders to claim the dividends that are not paid in the previous year and they are paid in preference to ordinary dividends.
For non-cumulative or simple preference shares, any dividends that are unpaid or

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