Prioritásosake

Prioritásosake is a Finnish term that translates to "priority share" in English. It refers to a type of share in a company that grants its holders certain preferential rights compared to ordinary shares. These rights can vary but often include priority in dividend payments or priority in the distribution of assets in case of liquidation. The specific terms and conditions of prioritásosake are defined in the company's articles of association.

There are typically two main categories of priority shares: those with preferential dividend rights and those with preferential rights in liquidation. Dividend priority means that holders of prioritásosake receive their dividends before ordinary shareholders. This can be a fixed amount or a percentage. Liquidation priority means that if the company is dissolved, holders of prioritásosake are entitled to receive back their initial investment or a specified amount before any remaining assets are distributed to ordinary shareholders.

The issuance of prioritásosake can be a strategic tool for companies seeking to raise capital while offering investors a degree of security or preferential treatment. However, it can also dilute the voting power of ordinary shareholders if the priority shares do not carry voting rights, or if their voting rights are limited. Investors considering prioritásosake should carefully review the company's articles of association to understand the exact nature and extent of the priority rights granted.