Deferred Shares
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Deferred SharesKnowledge Center |
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What are Deferred Shares? Meaning.Deferred Shares are stocks whose dividends are not paid until the expiration of a stated date, or until a specified event, such as the company's profitability reaching a certain level, has taken place. Normally they are shares whose right to a dividend is postponed until after dividends of a prescribed amount have been paid to other shareholders. In spite of the postponement of dividend rights, the amounts ultimately accruing to the holders of deferred shares may, if the company is successful, be very considerable. Usually the original founders of the business hold these stocks.
Compare also: Preferred Stock |
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