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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
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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Saturday, April 3, 2010

Pros and Cons for Investing in Preference Shares

Preference shares have the priority over common stocks in the way that their investors will receive the dividends before the common stock investors. It is good for investors who are just targeting on dividend yields since the company will pay them the dividends in full first.

In case of the company bankruptcy, investors of the preference shares will be paid out in assets before common stockholders.

Price movement of the preference shares will be slow due to low volume trading. Hence investors will not need to spend too much time focusing on the price movement.

Keep in mind as well that preference shares may be illiquid as compared to common shares. You may not be able to buy and sell as quickly as equities because of the low volume trading for preference shares.

Preference shares are not suitable for investors who are targeting in capital gain. It is because preference shares tend to give you lower capital gains compared to normal shares.

The issuer has the right, but no obligation, to redeem the preference shares. In the event of redemption, the issuer is likely to pay the investor the issue price for each preference share, plus any dividends payable up to the redemption date. Please note that investors might suffer some loses if they bought their shares at a price higher than the issue price in case of redemption.


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