Daily Point 2296 - Redeemable Preference Share

 

The Banking Tutor 

Daily Point 2296 

Redeemable Preference Share 

Redeemable preference shares are a type of stock that a company can buy back from shareholders after a specific period and at a predetermined price. These shares are like a hybrid of debt and equity, offering fixed dividends to investors but also the potential for the company to repurchase them to manage its capital structure and avoid permanent dilution.

Sekhar Pariti

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