Discuss Two Reasons Why Preference Shares Would Be Viewed as Less

question 16

Essay

Discuss two reasons why preference shares would be viewed as less risky than ordinary shares to investors.

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Definitions:

Avoid Dealing

The practice of not engaging or communicating with certain parties or issues, often as a strategy to prevent conflict or because the topics are deemed unsolvable or too sensitive.

Norris-LaGuardia Act

A 1932 U.S. federal law that restricted employers' power to prevent unionization and limited the issuance of injunctions in labor disputes.

Federal Courts

Courts established by the federal government of a country, in the United States, for instance, they have the authority to rule on legal disputes based on constitutional and federal law.

Non-Union Support Pledge

A commitment made by employees not to join or form a labor union, sometimes requested by employers in certain workplaces.