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I'm a Singaporean. The purpose for all my blogs is to share my life experiences in Singapore.

My Lessons on Investment

What are Shares, Unit Trust and ETF?
See which investment instrument is suitable for you.
What are Preference Shares?
It is different from the common shares.
How to invest using your CPF saving?
Enhancing your retirement saving
How to invest regularly if you do not have a lot of saving?
You still can invest if you can save $100 per month
How to buy gold in Singapore?
Different ways of investing in Gold.
My Investment Strategy
Having a winning strategy is important
Be a investor or a trader?
Reasons on why I want to be a investor rather than a trader
Peace of mind after buying shares?
Reasons on sleepless night after buying shares
Things to avoid in stock market.
Don't attempt to try these even you are an expert
My favorite quotes from Warren Buffett
Very meaningful and useful investment quotes
Buying stocks based on price and value
This is the method I use when buying stocks
Investor, Traders and Speculators Charts
Charts are affected by different players in the markets
My Quotes/Rules of Investment
My own investment rules and quotes
The Goose That Laid the Golden Eggs
Protect them at all costs
Dealing with Market Randomness
Reasons on why market direction cannot be predicted
Who can be trusted in the market?
Beware of people who give you tips
Why I am not afraid of losing money in my investment?
Know your own limits and rules of the game.

My Market Analysis

STI Index
Comparison between 1998-2000 and 2008-2000
STI Index movement
Prediction from Oct 2009 to 2011
GOLD VS SGD Chart
Reason Why Gold might be a good investment
EUR/USD 10 years chart
Will it go up or down?
Taiji Symbol VS S&P 500
S&P 500 25 years chart
True value of S&P 500
Based on dollar index from 1988 to 2009
US Dollar Index
Using Taiji to Analyse
S&P(2007 to 2009) VS NIKKEI (1990 to 1992)
Is there any similarity?

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Sunday, March 28, 2010

What are Preference Shares?

Preference Shares are difference from ordinary shares. Unlike ordinary shares, preference shares do not have voting rights. This means that the share holders are not entitled to participate in the company’s Annual General Meeting (AGM) and vote on matters listed on the agenda.

Preference shares are ranked higher than ordinary shares. In the event of company bankruptcy, preferred stockholders will be paid out in assets before common stockholders, but after debt holders and secured creditors.

Dividend from the preference shares can be fixed or adjustable based on factors stipulated at the points of insurance. Your buying price for preference shares will also affect your yield on them.

Preference shares can be convertible or non-convertible. Convertible preference shares have the flexibility of converting to common shares. This allows you to lock in the dividend income and potentially profit from a rise in the price of the common stock. These are benefits that are not attached to a common stock.

Preference shares can be cumulative or non-cumulative. For cumulative preference shares, it means that if a company missed any dividends within the year, such missed dividends will be added to future dividends during the period of holding the preference shares.

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