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PGeneralUpdated 2 Nov 2026

Preference shares

Stock that gives shareholders priority over common stockholders for dividends and assets.

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

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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.

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