What Are Preference Shares? Why Do Firms Choose to Issue

question 6

Essay

What are preference shares? Why do firms choose to issue preference shares instead of straight debt or equity?

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Definitions:

Lysozyme

An enzyme found in saliva, tears, and other secretions, capable of breaking down bacterial cell walls and serving as an innate defense mechanism.

Enzyme

Protein that acts as a catalyst.

Bacteria

Single-celled, microscopic organisms that can be found in almost every environment on earth, some of which are beneficial and others harmful to humans.

Macrophages

Large phagocytic cells found in tissues or as mobile white blood cells at sites of infection, playing essential roles in the immune response and tissue homeostasis.