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Preference shares - reasons for issuing, risks and alternatives



Wed 3 January 2024 Preference shares - reasons for issuing, risks and alternatives

Preference shares are a class of shares within a company that give holders certain advantages or different right over ordinary shareholders.

Uses and Examples

Risks for Existing Shareholders

Process of Issuing and company law issues

Alternatives to preference shares for UK private companies

While preference shares offer certain advantages, they also come with limitations and considerations. Depending on your specific needs and goals, several alternative options exist for raising capital or structuring ownership in a UK company:

Equity Financing:

Debt Financing:

Other Options:

Choosing the Right Option

The best alternative to preference shares depends on your specific needs, financial situation, risk tolerance, and future plans. Consider factors such as:

 


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