Preference Share

In: Business and Management

Submitted By congchua09
Words 3745
Pages 15
Course #: Title

Course 5

Hybrids (1): Preference shares

Topic 1: Overview....................................................................................................................... 3 Why invest in preference shares? ........................................................................................... 3 What is a preference share? ................................................................................................... 3 What is a preference share? (cont) ......................................................................................... 4 Buying preference shares ....................................................................................................... 4 The preference share market .................................................................................................. 4 What should I look for in a preference share? ......................................................................... 5 Topic 2: Income .......................................................................................................................... 6 Dividends ................................................................................................................................ 6 When might a dividend not be paid? ....................................................................................... 7 What happens if the issuer misses a dividend payment? ........................................................ 7 Do changes in market interest rates affect my dividends? ...................................................... 8 Topic 3: Getting your money back .............................................................................................. 9 How many ordinary shares will I receive on conversion? ........................................................ 9 What ordinary share price is used to calculate…...

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