Redeemable preference shares:

Question

Quizplus · Accepted Answer

Redeemable preference shares can be repurchased by the company according to the terms and conditions of the issue. Bonus shares are not the same as redeemable preference shares as they are issued to existing shareholders for free, whereas redeemable preference shares are issued for a price and have specific redemption terms. Redeemable preference shares may or may not provide the holders with full voting rights and they cannot be exchanged for ordinary shares as they are a separate class of shares.

Redeemable Preference Shares