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Definition

Preference shares are usually non-voting, but can also be voting shares. If given the ability to vote the value of the shares is greater. Because preference shares do not participate in the risk of the company to the same extent as ordinary shares, it is often felt that they should also not have a say in important decisions like the appointment of directors etc. Some investors are not concerned about being able to vote, but, obviously, non-voting "prefs" have a smaller market of interested investors than their voting equivalent and so tend to trade at a discount.

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