Shares represent part-ownership in a company. They can be ordinary shares, preference shares or partly-paid (contriButing) shares.
preference shares which may be participating or nonparticipating as to the earnings of the corporation
Even that proved a stopgap; on December 3rd it was announced that the Banks would swap the debt for 75% of the ordinary equity and a slug of preference shares.
But the real question is whether the preference shares are safe.
The capital injection is understood to include a poison pill, probably in the form of preference shares that can be converted into UFJ ordinary stock at any time, that could be used to block SMFG's offer.
preference shares which may be callable for redemption at a specified price
The shares are usually of two kinds: preference shares and ordinary shares.
A share discount to par value can be significant for preference shares, which pay fixed dividends based on par value.
arrears of dividends for cumulative preference shares
