Is preference share a debt or equity? 911 viewsMay 7, 2013Accounting 0 Chancellor December 2, 2012 0 Comments I know that ordinary shares is part of the equity but what about the preference shares? Is it equity or debt? 2 Answers ActiveVotedNewestOldest 0 Sellers Posted December 2, 2012 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: