Sunday, July 25, 2010

Advantages of Issuing Preference Shares

• There will not be a loss of control within the company because the preference shareholders do not have the voting right

• It can be raised for a specific time period at the end of which it can be repaid. Thereafter the company need not pay the preference dividend

• The risk of financing will be less when compared to updating a loan because the preference dividend will be paid only if distributable profits are available.

• The company can collect financing through issue of preference shares because the company can pay an attractive dividend to attract funds in to the company

1 comment:

  1. Thanks for sharing this right and easy tips. ive got understand so much. If you like, than I also provide some releted information on Benefits for Preference Shareholders, Click now for my point of view on the topic.

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