The ACCA Learning Community
Home
199 online now in this group

ORDINARY SHARES AND REDEEMABLE PRERENCE SHARES

0 Votes
ORDINARY SHARES AND REDEEMABLE PRERENCE SHARES

What is the difference between ordinary shares and redeemable preference shares. is it only residual interest on ordinary shares?

February 29th 2016 AN ACCA USER 170 Points

1 Reply

+1 Vote

Ordinary shares are shares where you have voting rights but no fixed dividend. Preference shares is the opposite: You have a fixed dividend but no voting rights. If the company were to go into liquidation then they would pay off the preference shares first, as they have a fixed dividend.

Hoped this helped :P

March 5th 2016 AN ACCA USER 490 Points
...