Preference Share Essay examples

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Course #: Title

Course 5

Hybrids (1): Preference shares

Topic 1: Overview....................................................................................................................... 3 Why invest in preference shares? ........................................................................................... 3 What is a preference share? ................................................................................................... 3 What is a preference share? (cont) ......................................................................................... 4 Buying preference shares ....................................................................................................... 4 The preference share market
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10 Cash payment instead of shares ........................................................................................... 10 Mandatory conversion vs. reset preference shares ............................................................... 10 Step-up preference shares ................................................................................................... 11 Topic 4: Return and risk ........................................................................................................... 12 Calculating your returns ........................................................................................................ 12 Holding until conversion ........................................................................................................ 12 Selling on ASX ...................................................................................................................... 13 Measuring your return ........................................................................................................... 13 Higher return - higher risk ..................................................................................................... 13 Risk of capital loss ................................................................................................................ 14 Risk of capital loss (cont)

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