In compensation for abandoning their voting rights, the holders of priority Dividend shares are entitled to a Dividend that is paid out before the ordinary Dividend, and also sometimes larger than the ordinary Dividend. Their reduced liquidity (see liquidity – shares) often results in a discount on their price compared to ordinary shares. Priority Dividend chares are one of the categories of privileged shares.

(See Chapter 25 Selling securities of the Vernimmen)

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