The difference between ordinary and preference shares

The difference between ordinary and preference shares has three aspects:

• voting power
• distribution of profit (dividends)
• liquidation of the company.

The following table summarises the difference between ordinary and preference shares:

Related posts:

1. What are the ordinary shares?
2. Preference shareholders
3. Disclosures relating to share capital
4. The difference between balance sheet and income statement
5. Return on capital employed(ROCE)