A class of share capital that entitles the owners to a fixed dividend ahead of the company’s common shares and to a stated dollar value per share in the event of liquidation. Usually, owners of these do not have voting rights unless a stated number of dividends have been omitted.
Term of the Minute
Short-term government debts issued in denominations ranging from $1,000 to $1 million. Like many other cash-based investment vehicles, T-Bills do not pay interest but are sold at a discount and mature at par (100 per cent of face value). The difference between the purchase price and par at maturity represents the purchaser’s return, and is taxed as interest income.