ZIMSEC O Level Commerce Notes: Differences between Ordinary and Preference Shares
Ordinary shares | Preference shares |
---|---|
Receive a variable rate of dividend. | Receive a fixed rate of dividend |
Receive dividends last, after preference shares have been paid | Receive dividends first, before ordinary shares are paid. |
Can be management shares | Can be basic, cumulative or redeemable preference shares |
Have voting rights at Annual General Meetings | Have not voting rights. |
A risky form of investment. | A safe form of investment |
Are also known as equity | Do not own equity. |
To access more topics go to the Cambridge IGCSE Accounting(0452)/O Level Principles of Accounts(7110) Notes.