Ccps
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Ajay Mishra
(Expert)
04 February 2013
Hi
Convertible preference shares can be addressed as an investment that will act as a hedging tool in case the shares you have invested in, do not give you profits. It is a more secured investment than investing in equity debt financing.
Convertible preference share is a share that gives its investors the option to convert his Preference Shares into Ordinary Equity Shares. However, this option can be availed only after a prescribed period. The shareholder gets his dividend at a fixed rate and investors invest in them as fixed income securities.
Convertible preference shares can be addressed as an investment that will act as a hedging tool in case the shares you have invested in, do not give you profits. It is a more secured investment than investing in equity debt financing.
Convertible preference share is a share that gives its investors the option to convert his Preference Shares into Ordinary Equity Shares. However, this option can be availed only after a prescribed period. The shareholder gets his dividend at a fixed rate and investors invest in them as fixed income securities.
Ajay Mishra
(Expert)
04 February 2013
Convertible preferences shares are a good source of fixed income. After a specific period, investors are legible to convert their preference shares into equity shares. This attracts the investors by giving them an opportunity to profit from the rise in the price of the share. Convertible preference shares are suitable for those investors who have the interest in participating in the growth of the company. It works as a tool of hedging against the fall in the price of the preference share.
Convertible preferences shares are a good source of fixed income. After a specific period, investors are legible to convert their preference shares into equity shares. This attracts the investors by giving them an opportunity to profit from the rise in the price of the share. Convertible preference shares are suitable for those investors who have the interest in participating in the growth of the company. It works as a tool of hedging against the fall in the price of the preference share.
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Ajay Mishra
(Expert)
04 February 2013
Your company is private or public limited company.
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