Preference shares are listed on the JSE in the same way general equity shares are. They are issued by companies as an alternative way to raise capital. The shares are similar to debt instruments, as they pay investors a fixed return in the form of a dividend. Though preference shareholders are not guaranteed to receive dividends, they have a preferential right to be paid before ordinary shareholders — as long as the company has made a profit.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.