- Deferred Share
- 1. A share that does not have any rights to the assets of a company undergoing bankruptcy until all common and preferred shareholders are paid.
2. A method of stock payment to directors and executives of a company through the deposit of shares into a locked account. The value of these shares fluctuate with the market and cannot be accessed by the beneficiary for the purpose of liquidation until they are no longer employees of the company.
3. A share generally issued to company founders that restricts their receipt of dividends until dividends have been distributed to all other classes of shareholders.
1. Subordinate to all other classes of common and preferred stock, these shares are last in line when a company goes bankrupt and liquidates all assets.
2. These are different from phantom stocks because they don't allow for payment in cash. Also, rather than actual deposits of securities, companies sometimes maintain bookkeeping entries of cash equaling an offsetting security position. When the executive or director leaves the company, the cash is converted into stocks at market value.
3. No longer commonly used, these shares provided its holders with large dividend payouts only after all other classes of shareholders are paid. Holders of deferred shares had access to all the remaining profits after all obligations were met.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
deferred share — ➔ Share * * * deferred share UK US noun [C] STOCK MARKET ► a type of share where the dividend (= part of a company s profits) does not have to be paid until payments have been made on all other shares: »The directors receive their cash… … Financial and business terms
deferred share — /dəfɜd ˈʃɛə/ (say duhferd shair) noun 1. → deferred delivery share. 2. a share which entitles the holder to a deferred dividend … Australian English dictionary
deferred share — Chiefly Brit. a share of stock on which a dividend is not paid until some fixed date or until some conditional event. [1880 85] * * * … Universalium
deferred share — Chiefly Brit. a share of stock on which a dividend is not paid until some fixed date or until some conditional event. [1880 85] … Useful english dictionary
deferred share bonus plan — Where all or part of the employee s bonus is not delivered in cash but in shares and receipt is deferred and made contingent on the recipient remaining in employment until the end of the deferral period. Practical Law Dictionary. Glossary of UK,… … Law dictionary
approved deferred share trust — ADST A trust fund set up by a British company, and approved by HM Revenue and Customs, that purchases shares in that company for the benefit of its employees. Tax on dividends is deferred until the shares are sold and is then paid at a reduced… … Big dictionary of business and management
share — Shares represent a slice in the ownership of a company. Financial Services Glossary The authorised share capital of a company is divided into a number of equal parts. Each part is called a share. See ordinary shares, preference shares, securities … Financial and business terms
deferred delivery share — noun a share which can be sold only on the understanding that buyers must accept a delay in delivery of scrip, due to reconstruction of the company s share capital. Abbrev.: dd Also, deferred share … Australian English dictionary
deferred shares — plural noun Shares not entitling the holder to a full share of profits, and sometimes to none at all, until the expiration of a specified time or the occurrence of some event • • • Main Entry: ↑defer * * * deferred shares, stock shares not… … Useful english dictionary
Share — 〈[ ʃɛ:(r)] m. 6〉 Aktie [engl., „Aktie, Anteil“] * * * Share [ʃɛ:ɐ̯ ], der; s, s [engl. share, eigentl. = Teil, Anteil]: engl. Bez. für: Aktie. * * * Share [ ʃeə; englisch »Anteil«] der, / s … Universal-Lexikon