preference shares has the preferred right to get profit or dividend from profit of the company every year. If company not pay the profit in any year even then in cummulative preference shares case profit for that year keep continues to add until it is paid on the other hand in case of non-cummulative preference shares if company not declare profit distribution for any year it will not add to next period.
Cumulative shares are when the shares are combined and then evenly distributed to the share holders. Non cumulative preference shares are when they go to certain people first.
Cumulative shares are when the shares are combined and then evenly distributed to the share holders. Non cumulative preference shares are when they go to certain people first.
The non cumulative irredeemable preference shares do not accumulate over time. This therefore means that they cannot be redeemed in future.
Cumulative voting, which permits shareholders to cast one vote for each share of common stock owned in any combination, is prevalent.
non cumulative shares are those shares which do not get previouse dividends due to company's bad financial position. for example, if they were suppose to get dividend @10% last year, but could not get due to bad financial position of the company, and in the current year company gets stable and is willing to pay dividend, so it will pay only current year dividends and not last year dividends... if it was cumulative share company would pay last year and current year dividend.. conclusion: non cumulative share doesnot get previouse dividends and cumulative share gets all dividends (previouse+ current) when compnay restores its good financial position.
1.cumulative preference share capital 2.non cumulative preference share capital 3.participative preference share capital 4.non participative preference share capital
1.cumulative preference share capital 2.non cumulative preference share capital 3.participative preference share capital 4.non participative preference share capital
Cumulative shares are when the shares are combined and then evenly distributed to the share holders. Non cumulative preference shares are when they go to certain people first.
cumulative preference share :)
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Cumulative shares are when the shares are combined and then evenly distributed to the share holders. Non cumulative preference shares are when they go to certain people first.
Convertible preference share is a share that gives its investors the option to convert his Preference Shares into Ordinary Equity Shares. However, this option can be availed only after a prescribed period. The shareholder gets his dividend at a fixed rate and investors invest in them as fixed income securities.
The non cumulative irredeemable preference shares do not accumulate over time. This therefore means that they cannot be redeemed in future.
cumulative preference shares are those shares which get dividends for the current year and for the all previouse years if they were not paid due to the bad position of the compnay. suppose compay was suppose to pay dividends @ 10% every year to cumulative shares holders but could not pay fro two years due to bad financial position, and in the current year company is stable and willing to pay, so company will pay previouse + current year dividends to cumulative share holders, if it was non-cumulative share hoders compay would not pay all dividend, but it would pay only current year dividend. this is the difference between cumulative and non cumulative shares with respect to dividend payment. conculsion: cumulative gets all dividends if not paid earlier due to financail crises(previouse+ current) non cumulative gets only current dividend and not previouse dividend if not paid due to financial crises ( only current year dividend and all previouse are not paid)
C.PRP is the Citibank Preferred stock symbol. This refers to the non-cumulative, Series AA, $1.00 par value stock with a liquidation preference of $25,000 per share .
Preference share capital is type of capital which has preference on other type of share capital as preference share capital may have more profit ratio than other and it is paid first from profit of company and preference share holders get there share even if company has earn no profit. Equity share capital is share capital on which share holders get share from profit in the last after paying every other obligation on company. Detail answer available in related link.
What will happen to my preference shares If there is a merger?