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what happens to a company when it issues preference shares?
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in most cases , preferential sharesholders are paid dividends first before common shareholders are paid . in the event of a company bankruptcy , preferential shareholders have the right to be paid first before common shareholders. in exchange for these benefits , preferential shareholders do not have any voting rights. the issuing of preferential shares has no impact on share prices or issuing of bonuses , it is a mere coincidence that the stock price went up
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