Preferred share

Compared to common stock, preference shares are granted certain pre-emptive rights in terms of claims to assets of the company, as stipulated in the articles of incorporation. Examples: a pre-emptive right in the distribution of profits (a higher dividend, i.e. a preferred dividend); a priority claim to assets upon the winding up or liquidation of the company; a priority in the exercise of purchase rights, etc. Preference shares tend to be rare in Switzerland.

See alsoCommon stock