Preference Share

The guestes aren't contributing, and I'm burned out now. Sometimes you may see kind of funny symbol among the stocks counters. Such as this one: "OCBC Bk 5.1%NCPS 100"

They are preference shares, take the abovementioned as an example, OCBC Bk NCPS 5.1% 100. The trading symbol itself can reveal a lot of details. OCBC Bk simply stands for OCBC Bank while NCPS stands for non-cumulative and non-convertible preference shares. non-cumulative means the dividends that were not declared and not paid in the previous financial year will not be accumulated to the next financial year while non-convertible means there is no option for the preference shareholders to convert their preference shares to ordinary shares. The 100 at the end of the trading symbol means that the lot size is 100 shares i.e. 1 lot is equal to 100 shares as compared to the usual lot size of 1 lot is equal to 1000 shares.

I have attached the brochure for the preference shares below.



And here's the website you can read more: http://www.ocbc.com/global/investorrelations/Gco_Inv_PrefShareBond.shtm