Question

What is the difference between ordinary share capital and preferred share capital?

and it that vain, ordinary shares and preffered shares or stocks?

6 years ago - 2 answers

Best Answer

Chosen by Asker

Preferred shares are just that - they have a preference over ordinary (or common) shares for dividends and they also receive preference in the event of liquidation

6 years ago

Other Answers

By definition:

Share capital is the portion of a corporation's equity obtained from issuing shares/stocks in return for cash or other considerations.

Preferred share captital is the portion of equity obtained from issuing stocks, whose holders are guaranteed priority in the payment of dividends, but these shareholders have no voting rights pertaining to the corporation's operation or executive decisions.

Source(s)

by N.C. - 6 years ago