Words / P / Law

preference shares

phrase

B2CEFR level
60/100Rarity: rare
TechnicalRegister

Shares that carry a priority right to a fixed dividend and to return of capital ahead of ordinary shares.

The preference shares entitle the investor to an eight per cent cumulative dividend.

Similar: preferred shares

Topic: Corporate law in Legal English

Rarity runs from 0 (a word everyone knows) to 100 (almost never seen outside specialist or literary writing). Level is the word's real difficulty on the CEFR scale, from A1 to C2.

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More law words: Corporate law