What are different type of preference shares and how to buy them?

What are convertible preference shares?
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. Non-convertible preference shares will not have such flexibility to convert to common shares.

What are cumulative preference shares?
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 in the previous financial year will be accumulated to the next financial year. This is provided that you are still holding the shares. For non-cumulative preference shares, missed dividends in the previous financial year will not be accumulated to the next financial year.

How to buy preference shares?
You can buy or sell preference shares just like a common stock if they are listed on the Singapore stock exchange (SGX). You can do so either through a stock broker or an online trading platform.

New issue of the preference shares can be purchased from primary markets just like a new IPO stock. You can do so either through private placement, via ATM offers or other available placement channels.