Ordinary And Preference Shares! What Is The Difference?

Please gurus in the land can anybody clerify me between Ordinary Shares and Preference Shares. Also how can somebody buy a preference Share.

Hi

There are a few differences between an Ordinary and a Preferential Share.

1. If a company is folding up (Bankruptcy), the Preferential Shareholder would get pay out priority over the Ordinary Shareholder

2. Preferred shares might also pay higher returns - higher dividend per share

3. The downside to Preferential shares is they don't usually have voting rights on company policy issues

Finally, some companies allow a conversion and would give you a convention worth from Preferential to Ordinary Shares.

I hope its clear.