Fixed Dividend

Preference dividend is fixed and is expressed as a percentage of par value is not a legal obligation and failure to pay will not force bankruptcy. Preference capital called a fixed income security.

Convertibility

Preference share capital may sometimes be convertible partly fully into shares debentures at a certain ratio during a specified period. A variant in India is convertible preference shares which combine the cumulative and convertibility features  however, been a non-starter so far.

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