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Author Topic: Preference/Participating Preference Shares  (Read 1180 times)
Simon Pieman
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« on: Thursday, June 2, 2005, 15:51:54 »

Anybody know the difference? Really odd question I know but I'm stuck on some revision crap and can't find the answer!
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Simon Pieman
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« Reply #1 on: Thursday, June 2, 2005, 15:53:19 »

Is it just that they are entitled to an additional dividend over and above the fixed percentage?
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Kinky Tom
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« Reply #2 on: Thursday, June 2, 2005, 15:53:23 »

Sorry mate, despite working at the Institute of Chartered Accountants I have no idea, I'm sure no-one elso in my department has the faintest either.
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Simon Pieman
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« Reply #3 on: Thursday, June 2, 2005, 15:54:33 »

Fucking law units  :-))(

I'm sure that's the right answer, seems logical anyway
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BrightonRed

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« Reply #4 on: Thursday, June 2, 2005, 15:56:03 »

Participating preference shares

Definition (UK specific)
Preference shares which, in addition to paying a specified dividend, entitle preference shareholders to participate in receiving an additional dividend if ordinary shareholders are paid a dividend above a stated amount.

Not sure if that'll help..
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nicotine, valium, vicodin, marijuana, ecstasy and alcohol...
Simon Pieman
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« Reply #5 on: Thursday, June 2, 2005, 15:57:40 »

Grand - cheers BR, that confirms my thinking.
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Piemonte

« Reply #6 on: Thursday, June 2, 2005, 15:57:57 »

Quote from: "simon pieman"
Is it just that they are entitled to an additional dividend over and above the fixed percentage?


I think thats right. I think they can have greater voting rights too?
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janaage
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« Reply #7 on: Thursday, June 2, 2005, 15:58:46 »

Preference shares are paid in preference of other share holders, important if business goes belly up.  According to Zurich's technical investment unit.  I will get info on the other one in a sec.
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Simon Pieman
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« Reply #8 on: Thursday, June 2, 2005, 16:03:42 »

Cheers guys! My mind is so jumbled at the moment. I've had to learn all about investment stategies in security markets as well.
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janaage
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« Reply #9 on: Thursday, June 2, 2005, 16:05:13 »

Preference participation shares carry voting rights.  


Try looking at www.herts.ac.uk/business/finman/ek404.htm

The woman at work tried explaining it to me but it didn't make too much sense to me.
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