Preference Shares

Preference shares offer fixed dividends and have priority over common shares in asset liquidation. These shares are commonly used in venture capital and private equity to provide investors with a more secure return on investment while allowing them to maintain a stake in the company. Preference shares can be structured to include various rights and privileges, making them a flexible tool in investment structuring.

Key Takeaways

  • Fixed dividends and liquidation priority.
  • Used to provide secure returns in VC and PE.
  • Allows investors to maintain a stake in the company.
  • Can include various rights and privileges.

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