Definition
Preference shares are a type of stock that gives its owner certain privileges, such as priority in receiving dividends during times when there may be a lot of common stockholders
In the room
How the word shows up in a real conversation.
A mentor asks, “What is your Preference shares?” The useful answer is concrete: stock that gives shareholders priority over common stockholders for dividends and assets. A slide title is not an answer.
Common mistake
Using Preference shares as a label instead of a fact. If you cannot point to the evidence — a number, a customer, or a written assumption — you are using the word as jargon.
See also
Pre-approval or pre-qualification
Preliminary assessment of a borrower's creditworthiness before formal loan application.
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Pre-closing
Period before finalizing a business transaction or real estate deal.
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Prepaid expense
Payment made in advance for goods or services to be received in the future.
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Price elasticity
Measure of how sensitive demand is to changes in price.
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