Definition Deferred Shares. Description.
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.
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Deferred Shares Special Interest Group
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Compare also: Preferred
Stock
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Special Interest Group Leader
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