Preference shares are distinct because they:

Preference shares are recognized for their unique structure, primarily because they must receive dividends before ordinary shareholders. This feature is integral to the design of preference shares, which typically afford their holders a fixed dividend rate. This priority over ordinary shares means that in the event that a company declares dividends, preference shareholders are compensated first, securing their right to a return on investment before any profits are distributed to ordinary shareholders.

This characteristic of preference shares not only offers a level of financial security but also makes them an attractive investment option for those who prioritize stable income over voting rights or capital appreciation, which are typically associated with ordinary shares.

In contrast, the other features mentioned in the other options do not apply to preference shares in the same way. For example, while some preference shares may have the right to fixed dividends, they do not typically come with voting rights, which is a feature reserved for ordinary shares. Similarly, preference shares might not always be easily traded on the market, as their marketability can depend on various factors such as the specific terms of the shares and overall market conditions.