What’s The Difference between Ordinary Shares and Preference Shares?

Most preference shares pay dividends or some sort of preferance such as more voting rights or what not. They are usually only issued in blocks insted of singles since you only have a certain amount of the shares to begin with you want to limit the quantity of those.

As an Preference Shares holder you have special rights. They are the first to get paid if the business is wound up. Furthermore, Ordinary shareholders are entitled to receive dividends if any are available after dividends on preferred shares are paid.

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