Income Share
Investment Dictionary:
Income Share
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Income Share
A class of shares offered by a dual purpose fund that has little room for capital appreciation but gives the holder a portion of all income earned in the portfolio.
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Income Shares
Income Shares - It is a class of a capital stock that may be offered by a dual-purpose fund. The other classes of these shares are called capital shares.
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One class, called income shares, is entitled to all the portfolio's income, while the second, called capital shares, is entitled to appreciation in investments in the firm's portfolio.
These are normally fixed-income shares whose shareholders have the right to receive dividends before ordinary shareholders would rank above ordinary shareholders for the repayment of their investment in the company.
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Also dividends might be taken into account, as the direct income shareholders can expect, capital gains being more hypothetic for them
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Preference Shares - These are normally fixed-income shares whose holders have the right to receive dividends before ordinary shareholders but after debenture and loan stockholders have received their interest.
Leveraged investment company
An investment company or mutual fund entitled to borrow capital for its operations. Also, an investment company that issues both income shares and capital shares.
One of two types of shares in a dual-purpose investment company, which entitle the holder to the appreciation or depreciation in the value of a portfolio, as well as the gains from trading in the portfolio. Antithesis of income shares.
 See also: Stock, Share, Income, Capital, Investment
  
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