Definition of deferred share

One of a class of shares where dividends are only paid in a particular period of time after dividends have been paid on all other classes of shares one of a class of shares which do not pay dividends immediately, but pay them later, for example when the company reaches a particular level of sales. [1]

Deferred in this context is usually taken to mean that the shares carry fewer rights than the ordinary shares. Shareholders may not be entitled to vote their deferred shareholdings or receive dividends in respect of them. [2]

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