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(Stock Exchange) Brit and Austral shares representing part of the capital issued by a company and entitling their holders to priority with respect to both net profit and net assets. Preference shares usually carry a definite rate of dividend that is generally lower than that declared on ordinary shares. US and Canadian name: preferred stock Compare ordinary shares, preferred ordinary shares
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|Noun||1.||preference shares - stock whose holders are guaranteed priority in the payment of dividends but whose holders have no voting rights|
stock - the capital raised by a corporation through the issue of shares entitling holders to an ownership interest (equity); "he owns a controlling share of the company's stock"
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