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Finance Dictionary and Glossary of Investment Terms
Deferred Share
Definition 1.
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 payment of dividends until all other classes have been distributed.
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