Discover what preference shares are, their key features, types, and advantages for investors in this comprehensive guide by HDFC Bank. Learn what are Preference Shares, their meaning, types, and key features. Understand how preference shares differ from equity shares and their benefits for investors. Investing in preference shares is an excellent way to diversify your portfolio while securing a steady stream of income. Preference shares, often considered a hybrid between equity and debt, come with unique features like fixed dividends and priority over common shares in case of liquidation. A preference share, also known as preferred stock, is a type of share that offers fixed preferred dividends and priority in asset distribution over equity shares.
