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What is a deferred share exactly?

^opm^
^opm^ Posts: 164 Forumite
Part of the Furniture 100 Posts Combo Breaker
edited 16 June 2013 at 9:24PM in Savings & investments
Hi,

Got a few Thomas cook shares and they have had a rights issue recently which i know what that entails etc. but as part of there debt reduction plan they have split the current shares that had a nominal value of Euro 0.10 and gave you 1 new ordinary share of Euro 0.01 and 1 deferred share of euro 0.09.

Now what does this deferred share mean-reading on net it says they are a lower class of share when it comes to dividend payouts but that don't worry yet to Thomas cook shares. Also says sometimes in time these shares get cancelled anyway so why issue them to ordinary share holders then?

So are these shares ever going to be of monetary benefit to me? as in one way they have just doubled my amount of shares I own but at same time the free half they have gave me are worthless? will they always be so.

Any help?
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