Share certificate. Image credit

Share certificate. Image credit

ZIMSEC O Level Commerce Notes: Differences between Ordinary and Preference Shares

Ordinary sharesPreference shares
Receive a variable rate of dividend.Receive a fixed rate of dividend
Receive dividends last, after preference shares have been paidReceive dividends first, before ordinary shares are paid.
Can be management sharesCan be basic, cumulative or redeemable preference shares
Have voting rights at Annual General MeetingsHave not voting rights.
A risky form of investment.A safe form of investment
Are also known as equityDo not own equity.

To access more topics go to the Commerce Notes page.

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