1. There is fixed rate of dividend.
2. Dividend is paid after creditors but before the ordinary shareholders.
3. Capital repayment is after creditors but before the ordinary shareholders.
4. They mainly earn lower rate of return compared to ordinary shareholders since during good years they cannot earn more than their fixed rate.
-Do not have voting rights of holders
-Most of them are redeemable
-Their claim on company’s assets on liquidation come before that of ordinary shares but after creditors
-Their claim on company’s profits come before that of ordinary shares
Jonmhumble answered the question on October 26, 2017 at 16:42
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