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English definition of “preference share”

preference share

noun [C]
 
 
(also preferred share, mainly UK also preferential share) FINANCE, STOCK MARKET
a share in a company that gives the owner the right to receive a dividend (= part of the company's profit) before dividends are paid to owners of common shares, or when dividends on common shares are not paid at all → See also common share, participating preference share, preference stock, preferred stock
(Definition of preference share from the Cambridge Business English Dictionary © Cambridge University Press)
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