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Why preference shares are practically non-existent these days?

Because investors feel they would be better off investing in secured debentures instead. Preference shareholders as you know fall between two stools — they neither have the security of the debenture-holders nor the luxury of enjoying limitless income that is potentially possible from equity. In the event, they plump for the security of debentures discarding the few percentage points greater dividend that is offered vis-À-vis the interest on debentures.

S. MURLIDHARAN

More Stories on : Preferential Allotments | For the Asking

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