Preference shares are so called because holders of preference shares receive preferential treatment from the issuing company.

Name: Preference shares are so called because holders of preference shares receive preferential treatment from the issuing company.
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Preference shares are named so because they typically provide shareholders with preferential treatment, such as priority in dividend payments and claims on assets in the event of liquidation, over ordinary shareholders.

Preference Shares Are So Called Because Holders of Preference Shares