So I'm currently trying to wrap my head around what 'preference shares' are and their differences to ordinary shares.

Our lecture PowerPoint slide only says:

So does the "face value" of a share mean that it's price stays the same over time, unlike an ordinary share where the stock price can fluctuate?

Thanks

Preference Shares 5 Are different to ordinary shares due to: Preference shares have a face value Preferential treatment for dividends Preferential treatment in liquidation Usually a fixed dividend Has similar features to debt finance Regular payments and redeemable Expected return on preference shares lower than return on ordinary shares FBF Lecture 6