milt1968
15-04-2014, 10:04 PM
I have a question about preference shares. I will use ASBPA as an example.
So a preference share is guaranteed a certain return per year on investment?
If someone buys 10000 shares at current price of 0.86 and a return of 4.421% per year, they receive a return of $380 per year on their investment of $8600?
So it is basically like a term deposit, with the plus of being able to sell up whenever you want?
Very basic questions I know, but trying to get a grip on everything before I take the plunge.
T
So a preference share is guaranteed a certain return per year on investment?
If someone buys 10000 shares at current price of 0.86 and a return of 4.421% per year, they receive a return of $380 per year on their investment of $8600?
So it is basically like a term deposit, with the plus of being able to sell up whenever you want?
Very basic questions I know, but trying to get a grip on everything before I take the plunge.
T