What is another word for preference shares?
Pronunciation: [pɹˈɛfɹəns ʃˈe͡əz] (IPA) 
Preference shares, also known as preferred stock, is a type of stock in which shareholders are entitled to receive dividend payments before common stockholders. In financial terms, it represents the ownership interest of an individual in a corporation. There are several synonyms for preference shares, including preference stock, preferred shares, priority shares, and favored stock. These shares are considered less risky than common stocks as they promise guaranteed dividends and usually have priority in the event of liquidation. Companies often prefer issuing preference shares to raise capital as they can offer higher yields to investors while maintaining ownership control. Despite their benefits, preference shares do come with certain limitations, such as lower voting rights and less potential for capital appreciation.
