Corporate Action
Preference Shares
Learning Outcome
5
Evaluate advantages and disadvantages of preference shares.
4
Understand shareholder rights and limitations.
3
Compare preference shares with equity shares and debentures.
2
1
Explain why Agile was introduced
Understand preference shares and their role in capital structure.
Learn different types of preference shares.
A Wedding Banquet Analogy
Ordinary guests = Equity shareholders.
They enjoy the full celebration, but must wait their turn for food and seating.
VIP guests = Preference shareholders.
They get priority service first access to food, reserved seats, and guaranteed attention.
Hosts = The company
Ensuring everyone is served but giving special treatment to VIPs.
Preference shareholders receive priority dividends and repayment before ordinary shareholders.However, they usually do not have voting rights in company decisions.
Transition to Concept
In a wedding banquet, VIP guests are served first and get special priority, just like preference shareholders receive dividends and repayment before equity shareholders. However, like VIPs who don’t control the wedding decisions, preference shareholders usually have limited voting rights.
What are Preference Shares?
Preference shares are a class of share capital that carries preferential rights over equity shares in two respects
payment of dividend at a fixed rate before any dividend is declared on equity shares
Core Concepts (.....Slide N-3)
Summary
5
Build strong branding
4
Use different marketing channels
3
Target the right audience
2
Create and communicate value
1
Understand customer needs
Quiz
Which platform is mainly used for professional networking and B2B marketing ?
A. Facebook
B. Instagram
C. LinkedIn
D. Snapchat
Quiz-Answer
Which platform is mainly used for professional networking and B2B marketing ?
A. Facebook
B. Instagram
C. LinkedIn
D. Snapchat
