Preferred shares

Financial assets that combine characteristics of fixed-income and equity securities. Their holders are entitled to a non-cumulative predetermined remuneration, subject to sufficient distributable profits being obtained by an entity (other than the issuer) that acts as guarantor, or by the group to which it belongs. Despite their name, they do not give any preference to their holders; in fact, in the order of preferential creditors they lie behind all ordinary and subordinated creditors; they are only ahead of ordinary shares. They are traded on the AIAF market.