deferred share

noun [C] STOCK MARKET

Definition

› a type of share where the dividend (= part of a company's profits) does not have to be paid until payments have been made on all other shares: The directors receive their cash compensation in deferred share units, an instrument designed to mirror the increases and declines of a company's stock.

› a type of share where the dividend (= part of a company's profits) does not have to be paid until a future date: The National Association of Pension Funds objects to the fact that the deferred shares are paid out regardless of the performance of the company over the intervening three years.

(Definition of deferred share noun from the Cambridge Business English Dictionary © Cambridge University Press)

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