PDSnet Glossary

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Definition

<p style="text-align: justify;">A <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">preference share</span> which receives a <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">dividend</span> based on a variable - like the <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">prime overdraft rate</span> from a specific <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">bank</span>. These <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">shares</span> are relatively rare, but they do exist. They have slightly more security than other "prefs" because they can achieve a higher <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">return</span> in given circumstances - like a rising <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">interest rate</span> <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">cycle</span>.</p>