Called preference shares for ordinary dividends higher than common shares, and the company was liquidated, with the payment priority over common stock.
There are several categories for preferred shares, depending on the favorable for stocks that have boiled down the form as follows:
a. Preferred stock dividends are higher than common shares, preferred shares in return is not expected share of the value added business to business enterprise better.
b. Preferred shares partake, as well as on, this stock is higher than the dividend of common stock, and is sometimes projected share of value-added businesses.
c. Preferred shares have adjustable interest rates, stocks are interest rate (ie dividends) under the adjustable mount
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