preference share like a bond

they have right to collect interest, such as 7% annually.

The company have to pay that interest very year.

But it is equity,not debt. So, in their balance sheet, it doesn't show up as debt.

When company goes to bankruptcy, preference share holder will get their money before stock share holder, but after debt holders.

The prefererce share has more interest rate than debt because it has more risk than debt.

But you know when you buy stock, you divident is very little.

所有跟帖： 

• thank u 4 ur help -thxalot~~- ♀ (173 bytes) () 09/14/2004 postreply 17:30:36

• 优先股没有投票权 -jinht- ♂ (218 bytes) () 09/14/2004 postreply 17:37:04

• thank u -thxalot~~- ♀ (65 bytes) () 09/14/2004 postreply 17:43:47