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UK Convertible and Cumulative Preference Shares
Preference shares are a class of share which pay a fixed rate of dividend.They have similar characteristics to equities in that investors are able to receive dividends. Some companies issue convertible preference shares which give the investor the right to convert their shares into ordinary shares at a later date.
However, as the dividends from preference shares are fixed, an investor won't benefit from any increases in a companies profits but they will be protected if a company's profits falls. Generally preference shares are issued by larger blue chip corporations and are seen as a more secure investment type.
You must remember that there is a certain amount of risk when dealing in shares and so whilst you have the potential to make substantial profits, there is also a chance you can lose more than your original investment
| Five Key Benefits of trading preference shares with Halifax Share Dealing |
| 1. Convertible Preference Shares allow the investor to convert their preference shares into ordinary shares at a predetermined date and price. |
| 2. Dividends on Cumulative Preference Shares have to be paid before any disribution of profits to ordinary shareholders. If a company is unable to pay out the dividend to preference share holders, this entitlement is then carried forward until the company is in a position to pay out. |
| 3. Shares are held electronically in our nominee so there's no worrying about missing paperwork |
| 4. Access to Advanced Dealing (TradePlan), a new way to control risk and maximise opportunities. |
| 5. Once your Share Dealing Account is opened, track the performance of your Convertible or Cumulative Preference shares and plan your next trade by using our Market Information Centre |
Please note that you are unable to trade Preference shares with Halifax ShareBuilder.
Opening Your Account
Your Halifax Share Dealing Account can be opened with a £100 initial deposit. This can then be invested into any eligible investment of your choice.
Transfer from your existing UK stockbroker- Find out more about how to transfer from your existing UK stock broker to a Halifax Share Dealing account!
Next Steps
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Apply online for an account - it only takes a few minutes |
Call us now on 08457 22 55 25 (lines are open 8am to 9:15pm Monday to Friday and 9am to 1pm Saturday excluding English Bank Holidays)
Please remember the value of your investments and the income from them can go down as well as up. You may not get back the full amount you have invested. If you're in any doubt about the suitability of any of our products, or whether to buy or sell shares, you should consult an appropriate Financial Adviser.
Click here to view our Regulatory Information
Calls from BT landlines to 0845 numbers will cost no more than 2p a minute plus a 7p connection fee. The price of calls through other phone companies and from mobile phones will be different. Call price correct as of 28th October 2008.
