Preference shares

Yes, but they are not the same class of share as equity / ordinary shares

Ok, are irredeemable preference shares loans the same as loan notes?

No, irredeemable preference shares are .... shares The words at the END of each following point in brackets relate to loan notes - the owner / holders of irredeemable preference shares are share holders in the company (loan note holders are creditors of the company) - they are entitled to an annual dividend (provided there are enough distributable earnings) (loan note holders get an annual interest payment, whether or not there are distributable profits) - the rate of dividend is fixed (the rate of interest paid is fixed) - they tend not to have a vote (as creditors, they get no votes) - they are paid AFTER the loan note holders but before the equity shareholders in a liquidation (they are paid BEFORE all shareholders) the balance on the irredeemable preference share account (the nominal value of those irredeemable preference shares in issue) is shown as part of equity (redeemable preference shares are shown as long term liability) (the loan note balance is shown as a long term liability Hope that helps