What Are Redeemable Preference Shares?
Companies issue equity capital to procure money to finance their operations. Equity capital is raised by issuing common shares (also known as “equity shares”) or preference shares. Equity shares provide the shareholder voting rights in the company, and preference shares assure the shareholder of a fixed dividend rate whenever the company chooses to declare dividends. There are several classifications of these two basic forms of shares. Redeemable preference shares are a special type of preference shares which are very popular.
