Is preference share a debt or equity? 1.69K viewsAccounting0 Chancellor 0 Comments I know that ordinary shares is part of the equity but what about the preference shares? Is it equity or debt? 2 AnswersActiveVotedNewestOldest 0 Sellers Posted 0 Comments Preference shares can be both equity and debt. If the shares are redeemable, then it is debt (something like a bond).If the shares are not redeemable, then the preference shares are part of the equity. You are viewing 1 out of 2 answers, click here to view all answers. Register or Login Search for: