Understanding Preference Shares: Are They Still Worth It?

Honest Money

In today's episode, Warren Ingram answers your questions about preference shares, explaining how they work and why their popularity has waned among private investors. He discusses their volatility due to interest rate fluctuations and suggests RSA retail bonds as a more stable alternative. Warren also touches on stock exchange platforms like Altex, which has faced challenges, and A2X, which is geared more toward institutional investors.
Takeaways

• Preference shares are a form of investment where individuals lend money to a company in exchange for a fixed dividend payment.
• The price of preference shares is influenced by the interest rate environment, making them volatile.
• RSA retail bonds may be a better option for stability and certainty.
• Altex has struggled due to economic downturns and compliance issues.
• A2X is designed for institutional investors and not for private investors.

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Capitole

1. Understanding Preference Shares: Are They Still Worth It? (00:00:00)

2. Preference Shares and AltEx (00:00:01)

3. A2X Exchange for Institutional Trading (00:08:16)